Four year-end reminders
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#1 - Don’t forget about stock gifts
Even with late November's rally, 2022’s rough stock market may still be a concern for some. Chances are, though, that not all of your holdings have had an unusually down year. Gifts of appreciated stock to your donor-advised fund or other type of fund at the community foundation is still one of the most tax-savvy ways to support your favorite charitable causes because capital gains tax can be avoided on the appreciated stock. #2 - If you are over 70 ½, consider a Qualified Charitable Distribution A Qualified Charitable Distribution (“QCD”) is a very smart way to support charitable causes. If you are over the age of 70 ½, you can direct |
up to $100,000 from your IRA to certain charities, including a field-of-interest, unrestricted, or scholarship fund at the Peninsula Community Foundation. If you are over the age of 72, QCDs count toward your Required Minimum Distribution (RMD) for the year. That means you avoid income tax on the distributed funds. Our team can work with you and your advisors to go over the rules for QCDs and evaluate whether the QCD is a good fit for you.
#3 - Use your donor-advised fund to do as much good as possible
The team at the Peninsula Community Foundation can help you maximize your already-established donor-advised fund, or set up a donor-advised fund if you are not yet a community foundation fundholder. Please reach out to the Peninsula Community Foundation to learn more about how “bunching” at year end can maximize the tax benefits of your donor-advised fund, and at the same time ensure that nonprofits are supported as demands on their missions continue to grow in choppy economic waters. Grantmaking from donor-advised funds continues to rise, especially as donors catch on to the ways a donor-advised fund can help with tax planning and, importantly, keep your giving levels consistent even in your lower income years.
#4 - Watch the calendar
An important note: Please reach out to our team to find out when certain transactions must occur to be completed during this tax year, including checks to a fund at the Peninsula Community Foundation which must be postmarked or hand-delivered no later than December 31. Gifts of marketable securities also need to be fully transferred by December 31, so please contact us in plenty of time for our team to process and receive the transfer.
This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.
#3 - Use your donor-advised fund to do as much good as possible
The team at the Peninsula Community Foundation can help you maximize your already-established donor-advised fund, or set up a donor-advised fund if you are not yet a community foundation fundholder. Please reach out to the Peninsula Community Foundation to learn more about how “bunching” at year end can maximize the tax benefits of your donor-advised fund, and at the same time ensure that nonprofits are supported as demands on their missions continue to grow in choppy economic waters. Grantmaking from donor-advised funds continues to rise, especially as donors catch on to the ways a donor-advised fund can help with tax planning and, importantly, keep your giving levels consistent even in your lower income years.
#4 - Watch the calendar
An important note: Please reach out to our team to find out when certain transactions must occur to be completed during this tax year, including checks to a fund at the Peninsula Community Foundation which must be postmarked or hand-delivered no later than December 31. Gifts of marketable securities also need to be fully transferred by December 31, so please contact us in plenty of time for our team to process and receive the transfer.
This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.
For more information about establishing a fund, please contact Michael Monteith, Email/757.327.0862
