As 2023 comes to a close, below are a few tax-saving strategies and tips to keep in mind as you plan and direct your year-end giving to make a difference for our community and beyond.
- Consult with your professional advisors. Before making any significant gifts to charity, consult with your CPA, attorney, or other advisors to learn about how your gift might affect your taxes and estate.
- Sell your depreciated assets and donate the cash. If you would like to support Voices for Children but your stocks have decreased in value, it is best to sell them first and then donate the cash. This allows you to record the loss as a tax deduction and qualify for an income tax deduction for the gift.
- Make a Qualified Charitable Distribution (QCD) of IRA assets. If you are 70½ or older you can transfer up to $100,000 per year from your IRA directly to Voices for Children without having to pay income taxes on the transfer. If you need to meet a Required Minimum Distribution (RMD), you can use this transfer to satisfy all or part of your obligation.
- Help offset the tax liability on a retirement account withdrawal. If you are 59½ or older, you can take a distribution from your retirement plan account and then make a gift to Voices for Children without an early withdrawal penalty. If you itemize your deductions, you can take a charitable deduction for the amount!
- Consider gift “bundling.” You can bundle several years’ worth of support for your favorite organizations through a single, year-end gift through your donor-advised fund. Gift bundling enables you to lock in support to achieve your long-term charitable goals, while realizing the full tax benefit during the 2023 year.
