As the year draws to a close, it’s a great time to consider charitable giving – and maximize your donations by implementing a thoughtful giving strategy.
Start by identifying your goals:
- What are the causes most important to you?
- What is motivating you to give at this moment?
Narrowing down your focus can increase the impact of your donations.
Then, explore tax-smart, high-impact donations. These can be a highly appreciated stock to avoid capital gains or a life insurance policy you no longer need.
Next, consider bunching gifts to hurdle the 2023 standard deduction. With the higher standard deductions, boosting up giving in one year to make itemizing on your taxes make sense.
Finally, decide when to give. Timing might be important to you, but also to the charity. Timing may be as simple as utilizing a donor-advised fund to allow you the deductions now, grow the contributions over time, and give grants to charities later or when they need it most.
And remember to take advantage of state tax credits. A few have been expanded and separated, allowing multiple credits for your charitable giving.
By taking these steps, you can maximize their benefits while ensuring that your donations have a meaningful impact.
Looking to make a difference through charitable giving?
REDW Wealth Advisors can help you create a smart plan for the upcoming year. We’ll guide you in setting up a donor-advised fund, transferring appreciated assets, and making qualified charitable distributions.
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