Charitable giving is top of mind for many as we enter the last quarter of the year. But sometimes the joy of giving can be overshadowed by impending tax deadlines, urgent appeals from charities, and the holiday rush. If that sounds familiar, a Giving Fund could help.
Here are six signs you need to open a Giving Fund (donor-advised fund) before December 31. Already have one? Consider sharing this list with a friend or family member:
- You wish you had more time to give
With the tax deadline of Dec. 31 quickly approaching, you may feel the pressure to make significant charitable gifts before year-end. With a Giving Fund, you can make a contribution to your fund now for tax purposes, and then recommend grants when you’ve had time to research charities and pray about your decisions.
- You’re overwhelmed by charity appeals
With year-end comes a deluge of emails and appeal letters from multiple charities, and you may wish you were on fewer mailing lists. With a Giving Fund, you can recommend grants anonymously, and we’ll send the checks for you.
- You want to maximize your tax savings this year
If the total of your potential itemized deductions is just below the level of the standard deduction, you may be able to maximize your tax benefits by “bunching” your 2021 and 2022 charitable contributions into this year. This may allow you to enjoy an increased itemized deduction in 2021 and still take the standard deduction next year. Use a Giving Fund to corral these contributions and grant over time.
- You want to take advantage of this year’s opportunities
The 2020 CARES Act included an expanded charitable deduction for cash gifts made in 2020 to churches and public charities. This opportunity was extended through 2021. So, if you itemize deductions on your income tax return, you can deduct charitable gifts up to 100 percent of your AGI this year and may eliminate or significantly reduce taxes.
- Your stocks are up
If your investments are up, you may be facing higher capital gains taxes next year. You can offset these gains with a gift of appreciated stock before year-end to your Giving Fund. We liquidate the stock for you and place the proceeds in your fund for recommending grants to charity.
- You’re feeling pressure to shop
With so much emphasis on the material during this time of year, you may be looking for ways to refocus your family on giving, rather than getting. A Giving Fund can help spark a conversation with your spouse, grandchildren, or others about the causes they care about. Then, you can go online together to research charities, recommend grants, and start a generous family tradition.