Year-End Giving Tips

Year End Giving Tips

• New for 2020: Taxpayers can deduct up to $300 in charitable contributions even if you claim the standard deduction.
• If making a cash donation, the charity must have the amount in hand by December 31 or, if mailing in a donation, it must be postmarked by December 31.
• You want to make a significant charitable donation, but cannot decide where to give? Consider donating to a donor-advised fund. A donor-advised fund allows you to donate to a public charity, receive an immediate tax deduction and recommend grants to charities over time. Most donor-advised funds have a minimum donation amount. There are several organizations that have donor-advised funds. The ones we see the most are through Fidelity Charitable and Schwab Charitable.
• Are you at least 70½ years-of-age and required to take a minimum distribution from your IRA by year end? If you do not need the money, consider donating the amount received to charity. This benefits you by reducing your gross income and benefits the charity or charities of your choice. Keep in mind that the funds must be transferred directly from your IRA custodian to the charity to receive this benefit.
• Short on cash, but still want to donate to charity? If you have a stock that has appreciated in value since you acquired it, consider donating the stock to charity. You benefit by not having to recognize the gain on the disposition of the stock plus you receive a charitable deduction for the average fair-market value for the stock on the date of the donation.