Four tips for setting charitable giving goals in the new year
The start of a new year is a great time to plan and reboot. Cliche as it may be to talk about resolutions this time of year, it's tough to deny that January represents a clean slate for "to do" lists, goals, and your overall mindset. As you consider your 2024 charitable giving goals and priorities, here are a few things to consider:
You may have capacity to give more to charity this year.
The IRS issued inflation adjustments for important thresholds such as the standard deduction, Social Security cost-of-living adjustments, annual exclusion gifts, Required Minimum Distributions, Qualified Charitable Distributions, and levels of income for each tax bracket. Talk with your advisors about how these adjustments might impact your charitable giving goals – or even create opportunities for you to do more to support your favorite causes in 2024.
You may soon get a charitable deduction on your taxes, even if you don't itemize.
Many financial experts are keeping an eye on the status of the Charitable Act, which, if passed, would allow even non-itemizers to deduct certain charitable gifts on their income tax returns. This legislation has generated strong public support; 77% of Americans are reportedly in favor of the proposed "universal" charitable deduction.
Disaster relief will likely remain a top philanthropic priority.
Disaster giving is likely to remain high on the fundraising radar, meaning you will likely continue to see requests for donations to support disaster-related causes. Please reach out to the staff at the community foundation to strategize the most effective deployment of your charitable dollars to help those who need it most in the wake of disasters and humanitarian crises.
January is an ideal time to begin reviewing your estate plan.
The beginning of the year is an excellent time to be sure your estate plan is in order. Many people scramble to execute tax planning transactions at the end of the year. This often leaves very little time for thoughtful, strategic evaluation of the various components that make up a comprehensive estate plan, including financial planning, retirement planning, tax planning, investments and wealth management, business succession planning, planning for disability, evaluating wills and trusts as your family's needs change, and, of course, charitable planning.
As always, the team at Akron Community Foundation is here to help you evaluate your charitable giving plans for 2024. It is our pleasure to work with you and your advisors to maximize your charitable goals. To learn more, contact Laura Lederer.
This article is not intended as legal, accounting, or financial planning advice.