Friends,
As the holiday season is in full swing, we wanted to discuss charitable gifting, along with the various strategies one can utilize to gift to organizations important to you. Some of the questions that should be asked when looking into gifting should be: What is the purpose of the gift? What will be the strategy for determining the appropriate amounts to contribute to various charities? Once you determine these answers, you should decide on the different vehicles for gifting: cash, appreciated stock, real property.
Below we have highlighted a set of instruments that one can use to implement gifting.
- Donor Advised Fund: A DAF is a charitable account that is funded once or continuously over a lifetime that allows the donor to receive tax deductions up to 30% of your AGI for securities or real property and 60% for cash in the year of donation. They cannot receive QCD’s.
- Private Foundations: Foundations are vehicles used by high-net-worth individuals and families that typically donate or fund other charitable ventures.
- Charitable Remainder Trusts: A CRT is a trust that provides annuity payments to the donor for no more than 20 years (or the life of the donor) and at the end of the period the remaining assets are donated to qualified charitable organizations.
- Qualified Charitable Distributions: QCD’s are a common practice of gifting from an IRA (up to $105,000 in 2024) that can satisfy Required Minimum Distributions.
Let us know if you would like to discuss how we can assist with your holiday gifting goals!
Matt and Andrew
Sources: Vehicles For Charitable Giving - Fidelity
How to gift money to children, family, and loved ones | Fidelity