Charitable Giving Through Your Investment Accounts
While you might contribute to charitable causes throughout the year, this topic often comes up during the holiday season and end of the year. While you might write a check or give cash, there are other ways to give to nonprofit.
Contributions made directly from your taxable account are an option. Giving highly appreciated stock that you have held for more than a year from your taxable account can eliminate capital gains and you can deduct the value of the gift on your tax return. Some nonprofits don’t have the resources to accept this type of contribution, but it is worth asking. Of course there is coordination and paperwork involved, but
that is what we are here for.
If you are over 70.5 and you are faced with a required minimum distribution, you can give all or part of it directly to a qualified nonprofit as a Qualified Charitable Distribution. This will exclude the amount you give from your taxable income and you don’t have to itemize to get the benefit. You do need to execute this by December 31st and there is a limit of $100,000.
Designate a qualified charity as a beneficiary on your investment account. While this strategy hopefully isn’t an immediate contribution it is a way to include the causes your care about in your estate plan.
If you would like to talk about options give us a call. We are always happy to help.
