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Year-End Giving: Ways to Maximize Your Charitable Deduction

Posted on: December 18, 2019

Have you given any thought to your year-end charitable gifts yet? Now is a great time for giving. When you make a donation by December 31 to the Hamilton Community Foundation, you aren’t just giving money—you’re making a difference in our community. Here are ways to make the most of your year-end giving.

Bundling Donations

With the recent increase in the standard deduction, many donors are using advised funds to “bundle” charitable gifts for several years into one calendar year. This strategy allows you to exceed the standard deduction in one tax year, while using an advised fund to support your favorite charitable causes over several years.

 Review your stocks.

If you’d like to make a year-end charitable gift, consider giving appreciated stock. Selling stock will incur capital gains on the appreciation, but if you gift stock, you will receive a charitable deduction for the current market value of the stock—just as you would with a cash gift. Such gifts are deductible up to 30% of your adjusted gross income and you can carry the deduction forward for up to an additional five years.

 Add to Your Fund

If you already hold a fund with us, you may make additional gifts at any time. Contact us as soon as possible to learn how you can gift cash, stock, publicly-traded securities, IRA assets and even complex transactions like real estate.

 Honor a Loved One

A meaningful way to show the community that you care during the holidays is to honor a friend or family member by supporting a cause that they held close to their heart. At the Foundation, many nonprofit organizations have established endowed funds to secure their future operations.

 Give now—decide later.

If you are planning for a charitable tax deduction this year but are undecided about which nonprofits to support, consider opening a donor-advised fund at the Hamilton Community Foundation. You can claim a deduction for contributions to your fund now even though distributions from the fund might be made in future years. A donor-advised fund can be set up in one meeting.

 

IRA Rollover

If you are age 70 ½ or older, you can gift up to $100,000 per year directly from your IRA to the Hamilton Community Foundation to support or create a new scholarship fund, field of interest fund or a charitable organization endowment fund. By using your pre-tax IRA assets, your charitable gift costs you less. In addition, IRA Rollover gifts can be used to meet your required minimum distribution and are not subject to income taxes.

 Let the Hamilton Community Foundation do the legwork.

Working with the Hamilton Community Foundation gives you access to our extensive knowledge of the local nonprofit community and the broad charitable needs of our region—so you can stay informed about the organizations you support and the effect your giving will have on the future of our community.

 Before making any significant gift to charity, consult with your CPA, attorney or other advisor to understand the impact on your taxes and estate.