Truths About Year-End Giving
As the end of the year approaches, many people begin to think about charitable giving to our favorite nonprofit organizations. The Catholic Foundation is here to help make your giving wise, simple, and joy-filled. Many people think the end of the year is the best time to give to charity, but the truth may make you rethink year-end giving:
1. Nonprofits need your donations before year-end, but they don’t necessarily need them at the end of the year. A gift given today is just as effective, if not more, than one in late December. In fact, the possibility of year-end volatility and with all the busyness of processing last-minute donations, an early gift is the best gift!
2. You get the same tax benefits for the year whether you make a gift in November or December. Why not ease the burden on yourself and your financial advisors by giving before the rush? You’ll be at peace while enjoying your Christmas dinner and New Year’s celebration with the family!
3. If you want to use your IRA required minimum distribution (RMD) for charitable giving, you should decide now, prior to taking your distribution. That way, you get the tax benefits of making a qualified charitable distribution. The best way to guarantee it gets done in the right tax year is to initiate the gift by November, before your IRA custodian gets overwhelmed with year-end requests.
4. There’s no time like the present. The market doesn’t perform according to calendar dates. The market is volatile, especially near the end of the year. If you have an appreciated stock or bond in your account, you cannot accurately predict what its value will be in one day, one week or one month; you only know its value today. While it’s possible the asset will appreciate more, there’s also a chance it will lose value. Speak with your financial advisor to determine the best strategy.
5. There’s no need to wait until you receive your year-end bonus or decide to sell appreciated stock to get the ball rolling on a donor advised fund. You can establish a fund now. Then, transfer your gift into the fund when you’re ready, and start recommending grants! Read up on “bunching” to learn all about the benefits.
Have questions? We can help. Call us at 248.204.0332.