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Charitable Giving Strategies: A Season of Thanks and Thoughtful Giving

Charitable Giving Strategies: A Season of Thanks and Thoughtful Giving

November 19, 2023

November, a month synonymous with warmth, gratitude, and the spirit of Thanksgiving, offers a unique moment for reflection. As we gather around tables, replete with abundant feasts and surrounded by loved ones, many of us find our thoughts drifting to the ways we can give back. To align with this season of thanks, let's delve into strategic charitable giving that not only helps others but can also offer financial benefits for you.

  • Understand the Impact of Your Gift 

When choosing a charity, it’s important to do some research. Websites like Charity Navigator or GuideStar can provide insights into how organizations use their donations. It's not just about giving; it's about giving where it counts.

  • Required Minimum Distributions (RMDs) & Charitable Giving  

If you're over 72 and taking RMDs from your retirement accounts, consider directing some or all of your RMD to a qualified charity. This Qualified Charitable Distribution can satisfy your RMD requirement without the amount being added to your taxable income.

  • Giving Appreciated Assets 

Instead of cash, consider donating appreciated stocks or mutual funds. This strategy may allow you to avoid paying capital gains taxes on the appreciation while still getting a charitable deduction.

  • Donor-Advised Funds (DAFs) 

Think of DAFs as a charitable investment account. You can make a charitable contribution, receive an immediate tax benefit, and then recommend grants from the fund to your preferred charities over time.

  • Bundle Your Contributions 

With the increased standard deduction, you might find itemizing deductions less beneficial. However, by bundling or grouping multiple years of charitable contributions into one year, you may surpass the standard deduction threshold, making itemization viable for that year.

  • Legacy Giving  

This is for those who are thinking long-term. By including charitable giving in your estate planning, you're not only leaving a legacy of kindness but also potentially reducing estate taxes for your heirs.

  • Engage & Involve

Charitable giving isn't just about money. Time is invaluable. Engage with the organizations you support. Understand their mission and share it. By involving family in these decisions, you're passing on a legacy of generosity and a spirit of gratitude.

The beauty of this season is the reminder that generosity is a cornerstone of our shared human experience. By approaching charitable giving with strategy and thought, we can amplify the positive impact of our contributions on the causes we hold dear and also make the most of our financial planning.

At Martin Haugh Financial, we believe in the profound power of giving, especially when combined with informed financial strategies. If you’re curious about how to align your charitable aspirations with your financial goals, our doors (and hearts) are always open. Let's come together this season, combining the spirit of Thanksgiving with the joy of thoughtful giving.

Stay grateful and give wisely.

For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.