Five ways to maximize your clients' year-end giving
Before your clients ring in the new year, make sure they have maximized their charitable giving for 2020. Gifts made to a charitable fund by Dec. 31 will earn them a tax deduction for the current year while supporting the causes they love for many years to come.
Here are 5 tips for your clients to consider:
- Give Appreciated Stock: You'll receive a deduction for the fair market value and will also eliminate capital gains taxes. For the greatest impact, donate appreciated shares with a low cost basis. We recommend initiating stock transfers by Dec. 10 to ensure year-end processing.
- Give Retirement Assets: If you are 70 ½ or older, you can avoid paying taxes on distributions from your IRA by sending them directly to charity.
- Give in Someone's Honor: Donate in your loved one's honor in lieu of a holiday gift. You can show them you care while making a lasting difference in the community.
- Start a Charitable Fund: You'll get an immediate tax deduction and can take your time recommending grants to charities in 2021 and beyond. Akron Community Foundation offers a variety of fund types to meet your charitable needs. Funds can be started online with a credit card until 11:59 p.m. on Dec. 31 to count for the 2020 tax year.
- Talk to Your Advisors: Is a qualified charitable distribution from your IRA right for you? Or perhaps a gift of appreciated stock or property? Talk to your advisors about the most advantageous gifts for your situation.