The Gift of Generosity
While clients are busy wrapping presents, baking treats and making plans to celebrate with loved ones, the holiday season is also an ideal time to discuss another form of connection: year-end charitable giving.
For many, this time of year brings a unique opportunity to make a lasting impact on the causes they care about while reaping key financial benefits before the year passes.
‘Tis the Season for Smart Strategies
Year-end giving isn’t just about writing checks or dropping change in the nearest red bucket (though those are great too). As a professional advisor, you can help your clients elevate their giving strategies by maximizing the tax advantages and creating a legacy of generosity.
Here are a few timely considerations to share:
- Appreciated Assets:
Have clients who’ve experienced strong gains in their investments? Encourage them to consider donating appreciated stock or property. Not only can they avoid capital gains taxes, but they also receive a charitable deduction for the asset’s full market value. - Qualified Charitable Distributions (QCDs):
For clients age 70½ or older, QCDs from their IRAs can be a tax-efficient way to give. These contributions count toward required minimum distributions (RMDs) but won’t add to taxable income — a true win-win. - Bunching Deductions:
With the increased standard deduction, some clients might benefit from “bunching” their charitable donations into one tax year to maximize their deduction. It’s a great strategy for those with a giving spirit and an eye on the bottom line.
A Joyful Impact
At the end of the day, year-end giving isn’t just about taxes and deductions; it’s about the joy of making a difference. Whether your clients support their local food bank, fund scholarships or invest in a community foundation’s initiatives, their generosity can light up lives well beyond the holiday season.
As you deck the halls and close out the year, don’t miss the opportunity to guide your clients in giving smarter and giving well. After all, the best gifts are the ones that keep on giving.
Happy Holidays and Happy Giving!