SMART GIVING - Matthew Koll
Charitable giving is something near and dear to my heart. As a kid, I was often on the receiving end of other people’s generosity. Most years, Santa would have skipped my house on Christmas if it wasn’t for the generosity of others and our local church. So, paying it forward means a lot to me.
My family proudly includes Big Brothers Big Sisters of Northwest Arkansas in our charitable giving. Along with giving to my own favorite charities, I love helping others give as well. There are several strategies you can use - to not only maximize your tax deductions but also ensure the charity gets the biggest benefit from your donation.
Here are five smart giving strategies to consider:
GIVE THROUGH A DONOR-ADVISED FUND
Donor Advised Funds are the fastest-growing option, and for good reason. You can put a large lump sum into the fund – and get the tax benefit upfront. Those funds are invested for tax-free growth, and you can make donations to charities of your choice over time.
GIVE STOCK OR MUTUAL FUND SHARES
Giving stock or mutual fund shares directly to a charity can have an outsized impact without taking money directly out of your bank account. You would also be exempt from the capital gains tax on any appreciation.
GIVE THROUGH QUALIFIED IRA DISTRIBUTIONS
You can donate directly from your IRA. These Qualified Charitable Distributions are income tax-free and can be used to satisfy your annual Required Minimum Distribution.
GIVE THROUGH A CHARITABLE TRUST
The benefits of a charitable remainder trust include: convert an appreciated asset into lifetime income, potential to reduce capital gain and income taxes, and reduce or eliminate estate taxes.
GIVE THROUGH YOUR ESTATE PLANS OR VIA BENEFICIARY DESIGNATIONS
You can name your favorite charities in your estate plans by making a specific bequest for a dollar amount or percentage of your estate. You can also name a charity as the beneficiary on various investment accounts.
The best choice for you – will depend on your situation – and the impact you hope to make.
If you are thinking about giving, the staff at Big Brothers Big Sisters of Northwest Arkansas can help you get started today. It is their goal to ensure you receive the greatest benefit from your generosity.
Tis the season for giving! #CommittedToCommunity