7 Tips for Year-End Giving by Ted Dang, EBALDC Co-Founder

Here are a few tips for getting the most benefit from your contribution to EBALDC and any other charities you’ll be making gifts to this year – whether or not you will be itemizing deductions in 2019.

1. If you will be itemizing (that means you will probably have at least $24,000 in property tax, qualified mortgage interest, medical expenses and charitable contributions) you can still deduct the full amount of when you give cash to any qualified charity. However, if you have appreciated securities by giving those directly to EBALDC or to a donor-advised fund you will also avoid capital gains tax.
2. If you will be at least 70 1/5 in age by the end of the year, both itemizers and non-itemizers may exclude from their income contributions of up to a total of $100,000 to one or more qualified charities if they are made directly from the IRA account. The amount of the gift(s) will count towards your required minimum distribution but won’t increase your adjusted gross income and possibly subject your Social Security income to a higher level of taxation.
3. If you do not itemize deductions every year, consider “doubling up” on charitable gifts in alternate years, which may allow you to benefit from itemizing part of the time. A donor-advised fund is an easy way to do this because you may deduct the entire amount in the year of the contribution but recommend grants to the charities of your choice on your “normal” schedule.
4. Establishing a donor advised fund is easy. You can start a fund at a community foundation or at Schwab, Fidelity or another financial services firm’s charitable affiliate with a simple agreement, even on December 31st!
5. A charitable remainder trust may be the best way for you to liquidate property such as appreciated securities or real estate and save income taxes, avoid or reduce capital gains tax, generate additional cash flow for yourself and/or another person and to structure bequests.
6. If your estate will be more than $11.4 million (for a single person) or $22.8 million for married couples, remember to structure your trust and wills in a way that will reduce taxes, otherwise Uncle Sam will be there for his 40%. Estate gifts to charity are 100% deductible, so you can direct any estate “overage” to the charity of your choice rather than to the government.
7. Remember: Your financial assets are an important part of your life’s legacy, and your life’s legacy can truly help people and causes that need it.

By Ted Dang, EBALDC Co-Founder