Perry Green, CFO at Waddell and Associates, suggests three approaches. Consult your tax or financial advisor about the potential benefits of:
1. Appreciated Stock Donations: If you have appreciated stock held for over a year, donate it to a charity or donor-advised fund. You’ll receive a tax deduction and avoid capital gains tax.
2. Bunching Donations: Instead of small contributions over time, bundle multiple years of giving into one through a donor-advised fund to maximize tax savings and simplify record-keeping.
3. Qualified Charitable Distributions, or QCDs: If you’re 70½ or older, donate directly from your IRA to a charity or designated fund at the Community Foundation. This method lets you bypass income tax on the distribution and counts toward your required minimum distribution.
To learn more, visit cfgm.org/wkno