Simplify Your End-of-Year Giving: Smart Strategies to Maximize Your Impact and Tax Benefits

November 18, 2024 — As the end of the year quickly approaches, now is the perfect time to make a lasting impact with your charitable giving.

Approximately 30% of annual charitable donations occur in December, with 10% of those happening in just the last three days of the year. By planning ahead and understanding your giving options, you can select the causes that align with your values while taking advantage of strategies that maximize the potential of each donation. This proactive approach not only eases the pressure of last-minute decisions but also ensures that your gifts provide the greatest impact.

Here are three smart ways to maximize your gifts and receive valuable tax benefits, allowing your generosity to go further for the causes you care about:

Donating appreciated stock allows you to avoid capital gains tax and receive a charitable deduction for the full fair market value of your gift. This strategy not only helps you make a greater impact on the causes you care about but also maximizes your tax benefits. You can generally deduct up to 30%* of your adjusted gross income (AGI) based on the fair market value of the donated securities.

With a donor-advised fund, you can make a charitable contribution, receive an immediate tax deduction, and support the organizations you care about over time. It’s a flexible and powerful giving tool that allows you to contribute cash, stock, or other assets when the timing is right for you. Learn more about opening a fund here.

If you’re 70½ or older, a QCD from your IRA to a non-advised fund at the Greater Green Bay Community Foundation could be an ideal way to make a significant gift. You can donate up to $105,000 tax-free each year. Additionally, your QCD can potentially satisfy all or part of your Required Minimum Distribution (RMD) for the year*. By donating directly from your IRA, you avoid the taxes typically associated with taking an RMD, which means your giving will go further to support the causes you care about. Whether you’re supporting an existing fund or creating a new one, a QCD is a simple, impactful way to make a difference in the lives of others.

Many employers offer matching gift programs, meaning your donation could be doubled or even tripled, amplifying your impact and extending your generosity even further.

Need Guidance? We’re Here to Help! We understand that deciding where to give can feel overwhelming, but you don’t have to navigate it alone. Our team at the Greater Green Bay Community Foundation has deep knowledge of local nonprofits and community initiatives, as well as insight into the region’s most pressing challenges.

Whether your passions lie in education, health and wellness, economic stability, or addressing emerging issues, we can help you align your giving with your values. Let’s work together to create a tailored giving plan that maximizes your impact and supports the causes you care about most.

Contact us today at 920-432-0800 or email Annie Dart at [email protected] to start planning your end-of-year giving. Together, we can make a greater impact.

* Information provided is not intended to be tax advice. Donors should consult their tax advisors for more information.