Why Now is the Perfect Time to Revisit Your Charitable Giving Strategy

As the holiday season approaches, the spirit of giving becomes a consideration for many individuals and families. It coincides with an opportunity to reflect on their charitable goals and engage in philanthropy with both intention and impact.

The holiday season is a time for gratitude, celebration, and giving back. For high-net-worth individuals and families, this period can also be a time to reflect on how their wealth can make a lasting difference. Whether supporting local organizations or contributing to global causes, year-end philanthropy allows individuals to give back in ways that resonate with their personal values.

While the primary motivation for charitable giving is often selfless, there may also be significant financial benefits to consider that directly impact your wallet. Here are a few strategies to consider before the holiday season ends:

• Donor-Advised Funds (DAFs): A DAF allows individuals to make an irrevocable donation and potentially receive an immediate tax deduction. The funds can be distributed to charities over time, while offering flexibility in how and when donations are made.
• Qualified Charitable Distributions (QCDs): For clients aged 70 ½ or older, a QCD allows individuals to donate up to $100,000 directly from their IRA to charity. This strategy may help satisfy Required Minimum Distributions (RMDs) while reducing taxable income.
• Appreciated Securities: Donating appreciated stocks or securities can provide a dual benefit: donors can avoid realizing capital gains taxes and receive a charitable deduction for the full market value of the asset.
• Charitable Trusts: Establishing a charitable trust can be a long-term strategy for those who wish to combine giving with estate planning. These trusts can generate income for the donor or beneficiaries while ultimately benefiting chosen charitable organizations.

Overall, engaging in philanthropy allows you to build a legacy of generosity and commitment to causes that matter most to you and your family. Family philanthropy fosters a shared sense of purpose and provides an opportunity to educate younger family members on financial responsibility and the importance of giving back.