Charitable giving during the holidays is a wonderful way to lift up your community and make the most of your end-of-year tax benefits.
Yet, during the rush of the holiday season, how to give can sometimes become as overwhelming as where to give.
To help make your holiday giving easier, here are 10 tips from the Community Foundation of Broward for making a lasting impact with year-end giving.
1. Give where you live.
What better way to see the impact of your charitable support than to give to nonprofits and other community organizations making a difference in the place you call home?
2. Consider gift “bundling.”
You can bundle several years’ worth of support for your favorite causes or organizations with a single, year-end gift to a 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.
3. Donate appreciated stock.
Donating appreciated stock multiplies your giving power by removing your tax liability from the stock sale and realizing tax benefits from the donation. The stock transfer must take place before the end of the year to get a 2023 tax benefit – and sometimes it takes more than one day to complete – so don’t wait too long. Click here for instructions for donating stocks electronically to the Community Foundation.
4. Give with your IRA distribution.
Making a Qualified Charitable Distribution (QCD) from your IRA is an easy way to donate. A QCD is an above-the-line tax deduction that can satisfy your required minimum distribution. While a QCD isn’t permitted to a private foundation or a Donor-Advised Fund, the Community Foundation offers several types of charitable funds that can be supported by a QCD, such as Unrestricted Endowed Funds, Field of Interest Funds, Designated Funds and Scholarship Funds.
5. Name a charitable organization as a beneficiary in your will.
If now isn’t the best time to dip into your assets and make a donation, naming a charitable organization such as the Community Foundation of Broward as one of your beneficiaries is a great way to ensure that your future gift helps others.
6. Document the value of your gifts.
For donations of non-cash items worth more than $5,000, an appraisal may be required to determine fair market value.
7. Be mindful of tax benefit limits.
According to the Internal Revenue Service, generally you may deduct up to 60 percent of your adjusted gross income, but other limitations apply in some cases.
8. Give before the ball drops on Dec. 31.
For charitable contributions to count toward the 2023 tax year, they must be made by Dec. 31. Credit card charges processed before the end of the year are deductible in that year, regardless of when you pay off the charges. Also, checks written and mailed before the end of the year are deductible in 2023, even if the checks are cashed next year.
9. Contact your professional advisors to help clarify your best giving strategy.
It is always important to consult your financial advisor, accountant and/or estate attorney to fully understand the ramifications of year-end giving.
10. Consult with philanthropy experts at the Community Foundation.
We provide expert guidance to identify the best opportunities for you to accomplish your charitable goals, right here in Broward. Visit www.cfbroward.org to learn how we partner with local philanthropists like you who want to be more strategic and impactful with their giving.
The Community Foundation of Broward is ready to help you make a BOLD impact with your holiday giving. Contact Kelly Marmol, Vice President of Philanthropic Services, at email@example.com or 954-761-9503.