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Year-end reminders for your donors

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Encourage donors to review their stock holdings

Even though 2022’s rough stock market may still be a concern, late-year rallies may help. Chances are not all of your donors’ holdings have had an unusually down year. A gift of appreciated stock is still one of the most tax-savvy ways for donors to support your organization, because capital gains tax can be avoided on the appreciated stock. 

Donors over 70 ½ should consider a Qualified Charitable Distribution

A Qualified Charitable Distribution ("QCD") is a very smart way to support charitable causes. If a donor is over the age of 70 ½, the donor can direct up to $100,000 from an IRA to a public charity like your organization. If a donor is over the age of 72*, a QCD can count toward the donor’s Required Minimum Distribution (RMD) for the year. That means the donor will avoid income tax on the distributed funds. Ask your donors to consult their tax advisors to go over the rules for QCDs and evaluate whether the QCD is a good fit.

Remind your donors to watch the calendar

Be sure to remind your donors that certain steps must be taken to complete gift transactions during this tax year, including making sure that checks to your organization are postmarked or hand-delivered to your office no later than December 31. Gifts of marketable securities also need to be fully transferred by December 31, so make sure your donors contact you in plenty of time for you to process and receive the transfer.

This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. 

*The required minimum distribution age increased to 73 as of Jan. 1, 2023.

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