Happiness does not result from what we get, but from what we give. However, there are generally positive results for the donor in terms of tax benefits when making charitable gifts.
CPA Charlotte Henderson of Reynolds Bone & Griesbeck encourages these tax advantaged giving strategies in your charitable planning
- If you have appreciated stock, it could be beneficial to donate these assets over cash. Stock gifts may reduce or minimize your tax burden.
- If you’re 70 ½, you may direct your IRA required minimum distribution, or RMD, directly to charitable organizations, tax-free.
- Consider opening a donor-advised fund. You’ll receive a tax deduction the year you contribute to the fund and may continue to use this fund for future years to make grants to organizations. And, donor-advised funds can grow, tax free.
Please consult with your tax advisor prior to finalizing your charitable giving plans.