Anyone who’s ever given to charity knows about year-end giving and the pressure that comes along with it. You want to get the right deduction by December 31st. Right now you may be waiting for recommendations from your financial advisor and accountant about what needs to be done to offset potential taxes.
Giving cash is quick and easy but it isn’t necessarily tax-smart. If you hold appreciated assets, consider contributing them instead of cash. This will provide you with a double benefit. You’ll receive the maximum income tax deduction and at the same time, avoid the capital gains tax on the appreciated values.
With this in consideration, gifting these assets directly to your favorite charity may become a challenge. Many charities are not well equipped to handle this or may not be able to handle it efficiently, especially with the time constraints faced at year-end.
With the help of your financial advisor, Donor Advised Funds can handle this with ease. The gifted assets can be liquidated and made available for you to make grants to the charities you love.
We have many creative solutions to help you maximize your year-end giving. If you don’t already have a Donor Advised Fund, establishing one with us is easy. An initial deposit of only $5,000 gets you started. You can name your trusted financial advisor to continue as manager of the contributed assets and get immediate tax benefits. From those assets, you make grant recommendations on your own time timetable. It’s that easy.
Learn more about donor advised funds and how they operate.