#GivingTuesdayNow is a new global day of giving and unity that takes place on May 5, 2020 – in addition to the regularly scheduled December 1, 2020 #GivingTuesday – as an emergency response to the unprecedented need caused by COVID-19.
With that in mind, we want to offer some ideas on ways to give back and how to maximize your charitable intentions.
Hosted by the Community Foundation of Greater Memphis Foundation, the Mid-South COVID-19 Regional Response Fund provides flexible funding to organizations serving people impacted by novel coronavirus and the economic consequences of the pandemic in West Tennessee, eastern Arkansas, and northern Mississippi.
Additionally, Amazon Smile allows you shop as you normally would while allocating a small portion of your spending to the charity of your choice. Log in to Amazon through the Smile portal and specify the charity of your choice. You can proceed with your Amazon shopping, and the charity will receive 0.5% of the value of items purchased.
The PATH Act of 2015 made permanent the opportunity for IRA owners over age 70 1/2 to donate up to $100,000 directly from their IRA to qualified charities. This strategy has strong tax benefits for those who meet the age requirements, are charitably inclined, and don't need the distribution themselves.
Donor advised funds – make giving to charity as easy as online banking. Once an account is funded; log in, select the charity, specify the amount, click submit, and you’re finished before your coffee gets cold. Donor advised funds exist in a variety of forms – local community foundations, such as the Community Foundation of Greater Memphis, or funds offered through Fidelity, Charles Schwab, Vanguard, and others.
The video below does a good job of describing the benefits of using a donor advised fund for family giving.
At the intersection of investments, taxes, and charitable giving lies an exciting opportunity – exciting for us, at least. If you have taxable investments with embedded gains, you can give them directly to charity, which has significant tax advantages. Not only do you receive the charitable deduction for the donation, but you eliminate the capital gains tax liability associated with the investment. If you were planning to make the gift in cash, you can use the cash instead to repurchase the investment. The net result – you’ve made your gift, received your charitable deduction, and have the same investment portfolio but with a new, stepped-up cost basis.
Using a donor advised fund as a conduit for the donation of appreciated assets can provide even more flexibility.
And click here for our overview the CARES Act and its effect on your personal finances.
We hope you and your family are staying healthy and safe. As always, please call us at (901) 850-5532 if you have any questions.
We’re here for you, and we’re all in this together.