One question we often hear from our charitably-inclined clients is that they want to know how to do more good with their resources. In essence, they want to make the greatest impact possible with their charitable donation. Depending on one’s particular situation, the following solutions may provide a greater impact than simply pulling out the checkbook the next time you give.
#1 Contact the charity of your choice and offer to provide a dollar-for-dollar match, up to a certain threshold, during a fundraising campaign. This may incentivize other donors to step up and give more generously - knowing that their gift will essentially be doubled.
#2 Gift investments or property that’s appreciated in value directly to a charity or donor-advised fund. Doing so may save you money in capital gains tax. And could also provide you a tax deduction if you itemize. The potential tax savings can then be used to due market.
Lastly, #3 Qualified Charitable Distributions. So our philanthropists who have achieved age 70-1/2 are allowed to deliver funds directly from their IRA to their charity of choice, a qualified charitable distribution or a QCD, for short. Like the last strategy, this can provide tax savings, but the difference is that itemizing the donation is not necessary.
Charitable giving is deeply personal, and the right strategy depends on your unique goals and financial situation. Whether you want to maximize tax savings, inspire others to give, or simply make sure your dollars go as far as possible, thoughtful planning can make a big difference. If you’d like to explore the best way to become a more impactful giver, the team at Summit Wealth Group is here to help—reach out anytime to start the conversation.