Thoughts on Giving Tuesday

With Thanksgiving, Black Friday, and Cyber Monday behind us, welcome to Giving Tuesday!

Giving Tuesday is a global movement dedicated to charitable giving and powered by social media. For many, Giving Tuesday marks the beginning of a season of generosity that flourishes through year-end. With that in mind, we want to offer some ideas on ways to give back and how to maximize your charitable intentions.

Charity Begins Online

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.

Qualified Charitable IRA Distributions

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.

Make Giving Easy

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 FidelityCharles SchwabVanguard and others.

The video below does a good job of describing the benefits of using a donor advised fund for family giving.

Donation of Appreciated Securities

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. If you’d like to know more, please give us a call.

Wishing you and your family a peaceful and wonderful holiday season!