10 tips for year-end giving
November 23, 2020
 | By Jamie Schloegel, Chief Executive Officer |
It’s the most wonderful time of the year – for giving!
I just love, love, love the holiday season!
I totally get that this most wonderful time of the year comes with a healthy dose of chaos and stress, but I still love the wonder and awe behind all the generosity it brings. The end of the year, for many reasons, is the best time for giving.
If the pandemic has taught us one thing, it’s the importance of connection. Making a gift now that will enrich our community forever is a great way to honor the connectedness we have together.
Year-end giving is fun and fulfilling, and here are 10 tips to make the most of its benefits.
10 tips for year-end giving:
1. Give early and complete your gift by December 31
Different gift types take various amounts of time to process. Check out the dates to the right to ensure your gift will be counted in 2020.
2. Consider your income
Determine how much you want to give by examining your tax liability for the year.
3. Give now and decide who benefits later
If you need a charitable tax deduction this year, but are unsure which nonprofits to support with a gift, consider opening a donor-advised fund with us. You can claim a deduction now, and then every year for the rest of your life you can use the fund to benefit your favorite nonprofits anywhere in the world.
4. Give as a gift
Have people to shop for who have everything? Make a gift in their honor. We’ll send them a note to make sure they know how thoughtful you are.
5. Talk to your advisor
A chat with your CPA, attorney, or financial advisor will help you understand the impact a significant gift to charity will make on your taxes and estate.
6. Review your stocks
Consider a gift of appreciated stock. Selling stock will incur capital gains on the appreciation, but if you gift stock, you will receive a charitable deduction for the current market value of the stock – just as you would with a cash gift. Such gifts are deductible up to 30% of your adjusted gross income and you can carry the deduction forward for up to an additional five years.
Savvy tip: Avoid giving away stocks that are worth less than you paid for them—those should be sold instead with proceeds then donated to charity, so that losses can be used to trim taxes.
7. Retired and have more than enough?
Work the system by using one of many tax-advantaged ways to make retirement assets work for you and the causes you love. The Charitable IRA Rollover Act, for example, allows people age 70 1/2 and older to donate up to $100,000 from their IRA without counting the distribution as income. In addition, the transfer counts toward the required minimum distribution. Take advantage of this option now, as it’s not clear whether this benefit will be extended beyond 2020.
8. Look for match opportunities
Giving Tuesday is just a week away, and many local nonprofits will run match campaigns. See if your favorites are and consider a gift. Also, ask your employer if they have a gift matching program. LCF is currently matching gifts to the new Black Empowerment Fund.
9. Let your community foundation do the homework for you
Working through us will ensure your gift is made to a nonprofit making impactful work in your passion areas. Our staff is available to share what we know about all the good work nonprofits are doing in town. Just give us a call or email, we are excited to hear from you!
10. Make sure you are giving to charity if you need the tax deduction
Another way we can make this an easy process for you is by ensuring your gift is eligible for a tax-deduction. You will promptly receive a receipt and we check that all organizations are qualified nonprofits before sending grants.