FINANCIAL FITNESS
GIVE SMARTER, NOT HARDER With these strategies, investors can make the most of charitable giving and lighten their tax load before year-end.
AS WE APPROACH the end of the year, now is an ideal time to review changes in charitable giving laws to ensure you’re maximizing both your impact and tax benefits. Over the past few years, several vital updates have provided new opportunities for tax- savvy donors. One of the most notable changes involves enhanced tax deductions . For 2024, cash donations to public charities can now be deducted up to 60% of your adjusted gross income (AGI), while donations of noncash assets, such as appreciated stocks held for more than one year, can be deducted up to 30% of your AGI. If your contributions exceed these limits, you can carry forward the excess deductions for up to five years. Donating appreciated assets is a powerful strategy for those looking to increase the value of their giving. By gifting noncash assets instead of selling them, you can potentially avoid paying capital gains taxes, unlocking up to 20% more funds for charity. Additionally, you may deduct their fair market value, further enhancing your tax savings. Another critical update affects qualified charitable distributions (QCDs) from IRAs. If you’re over 70 1/2, you can direct up to $105,000 tax-free from your IRA to charity in 2024, lowering your taxable income while supporting a cause close to your heart. This strategy can be especially valuable for those 73 and older looking to satisfy required minimum
BY SHAUNA OSBORNE, NATIONAL EDITOR
IT'S YOUR LIFE. CRAFT IT.
SMALL HANDS, BIG HEARTS Introducing kids to the spirit of giving doesn’t have to be complicated.
distributions (RMDs) without increasing their tax burden.
Donate toys or clothes: Have kids go through toys or clothes they no longer use and choose items to donate to local shelters or charities, teaching them how their generosity can directly impact others. Sponsor an animal: If your child loves animals, consider sponsoring an endangered animal
Volunteer together: Look for family-friendly volunteer opportunities at local soup kitchens, animal shelters or community cleanup events. Getting hands-on helps children understand the value of giving their time. Host a holiday bake sale: Help them organize a small bake sale in your neighborhood or at a community event, with all proceeds going to a charity of their choice.
For estate planners, charitable remainder trusts remain an effective way to support philanthropic goals while securing an income stream for heirs. These trusts offer a win-win scenario by ensuring deserving causes benefit while providing donors with tax relief and estate planning flexibility. This December, make sure your philanthropic contributions not only make a difference but also align closely with your financial goals.
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or adopting a shelter pet as part of a donation program.
18 December 2024
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