Giving Smarter: Financial Insights for This Giving Season

As the holiday season approaches, Giving Tuesday offers a chance to pause, reflect, and give back to the causes that matter most to us. Celebrated on the Tuesday following Thanksgiving, this global movement inspires generosity in many forms—whether it’s donating money, volunteering your time, or sharing resources. It’s a wonderful opportunity to make a difference, and with a bit of planning, you can ensure your giving goes even further.

Here are a few strategies to help you maximize your generosity this Giving Tuesday and beyond:

1. Make the Most of Qualified Charitable Distributions (QCDs)

If you’re 70½ or older and have an IRA, QCDs can be a fantastic way to give. With a QCD, you can transfer up to $105,000 (for 2024) directly to a qualified charity. This not only satisfies part or all of your Required Minimum Distribution (RMD) but also keeps that income off your tax return. It’s a win-win for you and the charities you care about.

2. Bundle Donations with a Donor-Advised Fund (DAF)

If you’ve ever wished for a way to plan your giving over time, a donor-advised fund might be the solution. By contributing a larger sum to a DAF, you’ll get an immediate tax deduction and can decide later which charities to support. Bundling several years of contributions into one tax year can help you maximize your deductions.

3. Consider Donating Appreciated Assets

Have you been holding onto stocks or mutual funds that have grown significantly in value? Donating these appreciated assets directly to a charity can be incredibly impactful. You’ll avoid capital gains taxes and still get a charitable deduction for the asset’s full market value. It’s an effective way to make a big difference without a big tax bill.

4. Time Your Giving Strategically

While Giving Tuesday is a great day to contribute, aligning your donations with your overall financial goals can amplify their impact. Year-end giving is especially important for tax planning. We’re here to help you plan your giving in a way that maximizes benefits for you and your chosen causes.

5. Think About Legacy Giving

If you want to leave a lasting impact, legacy giving can be a meaningful option. Whether it’s naming a charity in your will or setting up a charitable trust, these strategies ensure your generosity continues for years to come. Plus, they may offer estate tax benefits for your heirs.

Giving can feel overwhelming when you’re trying to make it meaningful, tax-efficient, and aligned with your financial goals. That’s where we come in. As financial professionals, we’re here to guide you through the process—from identifying the best strategies to ensuring everything is done correctly. Our goal is to help you make the biggest impact possible.

This Giving Tuesday, take a moment to think about what matters most to you and how you can support those causes. If you’re ready to create a personalized giving strategy, we’d love to help you get started.