As the end of the year approaches, The Community Foundation’s Senior Advisor Rebecca Rothey provides three tips to help you meet your personal giving goals while maximizing tax benefits in an uncertain economy.
Gifts of appreciated stock still shine
Giving in a roller coaster market may continue to be a real concern for many, but remember, not all stocks are down. Donating an appreciated gift of stock is a fantastic tax-advantaged way to make gifts to charities. When donated directly into a donor advised fund at the Greater Washington Community Foundation or directly to the charity, you can avoid capital gains tax on the appreciation.
Ashley Hall, Director at Chevy Chase Trust and a member of our Professional Advisor Council, shared the following experience:
“A client came to us this year looking to make a larger gift to a cause important to them through their fund at the Greater Washington Community Foundation. Despite being in a down market, we still had highly appreciated positions in their portfolio that were prudent to reduce from a portfolio management perspective but would be costly to sell. Donating parts of this appreciated stock allowed us to reduce this position and saved the client almost $10,000 in Federal and local taxes.”
Donor-advised funds help both you and your favorite nonprofits
Even during economic uncertainty, grantmaking from donor-advised funds (DAFs) continues to rise, as donors pay increasing attention to the ways a donor-advised fund can help with tax planning. We encourage you to reach out to our team to learn more about how “bundling” at year end can maximize your tax benefits, and at the same time ensure that your favorite nonprofits receive the support they need.
Plan ahead to meet your goals!
As we approach the end of the year and look forward to 2023, I encourage you to make time to sit down and plan ahead so you can meet your personal philanthropic goals. Be aware of year-end giving deadlines to ensure you can receive the appropriate tax benefits.
Remember that checks to a fund at The Community Foundation must be postmarked no later than December 31 or hand-delivered no later than Friday, December 30 at 1 p.m. Gifts of marketable securities also need to be fully transferred by December 30, so be sure to contact us in plenty of time so our team can process and receive the transfer.
A reminder that the deadline for you to recommend grants through your fund at The Community Foundation is Friday, December 16. Any grant recommendations received after this date run the risk of not being processed in 2022 due to increased volume.
We are grateful that you have chosen to partner with The Community Foundation on your philanthropic journey. We are proud to partner with you in making a difference for the Greater Washington region – and look forward to continuing our work together in 2023!
Wishing you and your family a safe and connected holiday season!