Countdown to Year-End Giving

Countdown to year-end giving

This is the perfect time to review your giving strategy since decisions made by December 31 can have a significant impact on your tax liability. Spending a few minutes thinking about both your charitable AND financial goals can give you an advantage in both. Here are ten ideas to help you think about year-end giving. 

10. Start Now!

There are many ways to give and you’ll want to consider which giving strategy provides the philanthropic and financial benefits that fit you best. We are happy to talk with you and/or your professional advisors (attorney, CPA, investment manager) to make the process seamless.

9. Donor Advised Funds

Donor Advised Funds (DAFS) are often the best way to both simplify your giving and amplify your tax benefit, and can be opened with a minimum of $10,000. Want to hear from an enthusiastic Donor Advised Fundholder? Our Board Chair, Ryan Schwartz, is a fan.

8. Use Appreciated Securities

You can establish/add to any fund using cash, of course—but if you give shares of appreciated public stock or bonds that you’ve had more than a year, you will gain a tax advantage. Instead of triggering the capital gains tax, you will receive a charitable deduction based on the asset’s fair market value today, up to 30% of your adjusted gross income. You can carry the deduction forward for up to an additional five years.

7. Put Your Non-Cash Assets to Work

Do you have appreciated stock, mutual funds, private company or restricted stock, retirement assets or certain tangible personal property? Often, we can use these non-cash assets to fund your charitable giving. The key is to start now; these transactions can take longer to convert.

6. Take Advantage of the Charitable IRA Rollover

If you’re 70½ or older, you can put your Required Minimum Distribution (RMD) to work for you! You can donate up to $100,000 of your RMD to a nonprofit organization, including The Community Foundation. Think about establishing or adding to your fund here, or take the opportunity to support our work by making a gift to our Community Endowment Fund or a particular Field of Interest. Please note: RMDs are not able to be deposited into Donor Advised Funds.

5. Give the Gift of a Designated Agency Endowment Fund

There are many worthy nonprofits that struggle with resources. By establishing a Designated Agency Endowment in their name, you can be assured that The Community Foundation will steward a specific portion of your fund assets to your named agency, along with your instructions, each year in perpetuity.

4. Start a Field of Interest Fund or an Unrestricted Fund

If you’re interested in improving Northeast Florida, but are uncertain about which specific nonprofits to recommend, consider a Field of Interest Fund or an Unrestricted Fund. Both put The Community Foundation’s seasoned grantmakers in charge of decision-making, either from your stated area of interest or using their discretion regarding the greatest needs/opportunities.

3. Update Your Beneficiaries

You can update the beneficiaries on your bank accounts, retirement accounts or insurance policies at any time, but it’s a good idea to review them at least annually. If you choose to, you can use this opportunity to add The Community Foundation or any nonprofit as a beneficiary—it’s the simplest way to leave a planned gift.

2. Think About Estate Planning

As we near the end of another year, it’s often a time of reflection about the arc of our lives. It may be a good time to think about your charitable legacy and talk to your professional advisor about your estate plans. Charitable gifts will be excluded from your taxable estate, and we can work with you and/or your professional advisors to identify what charitable vehicles might be appropriate.

1. Talk with Your Family About Your Philanthropic Values

As Andy Williams sang, “…when loved ones are near, it’s the most wonderful time of the year.” It may also be the perfect time to articulate what you value in your charitable giving. Your loved ones may know that you give generously and to whom, but they may not know why. Enlighten them! If charitable giving is important to you, share your motivation with your family members and also the fulfillment that your gifts bring. If you’d like to bring them into your charitable giving process, or help them on their own journey, we have some great suggestions for family philanthropy.

Contact Information

245 Riverside Avenue, Suite 310
Jacksonville, FL 32202

The Community Foundation for Northeast Florida

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