Matthew's Wishes....in his own words.
As we approach the Christmas season, charitable giving comes to mind. It is not only a time of generosity to our friends and families, but an opportunity to reflect on our achievements over the past year, and an important time to plan for a new year.
As you consider making plans for next years’ gifts, consider opening a Donor Advised Fund (DAF). A DAF offers a flexible and tax-efficient way to carry out your philanthropic goals and control your annual giving. The charitable giving deduction for 2023 is 60 percent of AGI for cash contributions held for over a year, and 30 percent of AGI for non-cash assets. DAFs offer a convenient way to manage your year-end gifts. By making a gift to a DAF at CCF-LA, you get an immediate tax deduction, while maintaining control and flexibility to recommend grants over time.
You may also want to consider making a gift of an IRA qualified charitable distribution (QCD). One of the primary benefits of an IRA QCD is the tax advantages it offers. With an IRA QCD, individuals can donate a portion of their IRA directly to a qualified charity without incurring taxes on the distributed amount.
While you cannot make an IRA QCD to a donor advised fund, you can make the IRA QCD to CCF-LA for its general support.
Consider also donating appreciated assets such as stocks, bonds, mutual funds or real property. By donating appreciated assets, you can avoid capital gains taxes while still receiving a tax deduction for its fair market value. You should consult with your financial planner or tax profession to understand the tax implications and requirements for donating appreciated assets.
Matthew Hansen †