Don’t forget about stock gifts
This year’s rough stock market may prompt you to dismiss the idea of giving stock. Chances are, though, that not all of your holdings have had an unusually down year. Gifts of appreciated stock to your donor advised fund or other type of fund at Cobb Community Foundation is still one of the most tax-savvy ways to support your favorite charitable causes because capital gains tax can be avoided on the appreciated stock.
If you are over 70 ½, consider a Qualified Charitable Distribution
A Qualified Charitable Distribution (“QCD”) is a very smart way to support charitable causes. If you are over the age of 70 ½, you can direct up to $100,000 from your IRA to certain charities, including a field-of-interest, unrestricted, or scholarship fund at the Cobb Community Foundation. If you are over the age of 72, QCDs count toward your Required Minimum Distribution (RMD) for the year. That means you avoid income tax on the distributed funds. Our team can work with you and your advisors to go over the rules for QCDs and evaluate whether the QCD is a good fit for you. Be sure to work closely with your advisor to make sure your QCD can be processed by year end. Of course, it’s also not too early to get a jump on your 2023 QCD!
Use your donor advised fund to do as much good as possible
The team at Cobb Community Foundation (CCF) can help you maximize your already-established donor advised fund, or set up a donor advised fund if you are not yet a CCF fundholder. Please reach out to our team to learn more about how “bunching” at year end can maximize the tax benefits of your donor advised fund, and at the same time ensure that nonprofits are supported as demands on their missions continue to grow in choppy economic waters. Grantmaking from donor advised funds continues to rise, especially as donors catch on to the ways a donor advised fund can help with tax planning and, importantly, keep your giving levels consistent even in your lower income years.
Know you want to give now but not sure where to give?
A donor advised fund may be the perfect solution for you, as you are making a charitable contribution with every deposit. However, you have as long as you need to decide on the charities you want to ultimately benefit. Let us help you.
Watch the calendar
An important note: For your convenience, we have created a list of year-end giving dates to show when certain transactions must occur to be completed during this tax year, including checks to a fund at CCF which must be postmarked or hand-delivered no later than December 31. Gifts of marketable securities also need to be fully transferred by December 31, so please contact us in plenty of time for our team to process and receive the transfer.
