Now is the time to share important reminders with your clients about year-end gifts. Time is indeed of the essence!
Gifts of appreciated stock still shine
Giving in a roller coaster market may continue to be a real concern for many of your philanthropic clients, but remember, not all stocks are down. Gifts of appreciated stock to a Donor Advised Fund or other type of fund at the PACF is still one of the most tax-savvy ways to support favorite charitable causes because capital gains tax can be avoided. And of course, a stock market rally can present timely opportunities.
Donor-advised funds help both the donor and the donor’s favorite nonprofits
Grantmaking from Donor Advised Funds at the PACF and nationally continues to rise, especially as donors and their advisors pay increasing attention to the ways a Donor Advised Fund can help with tax planning and, importantly, keep a donor’s giving levels consistent even in lower income years. Reach out to the PACF to learn more about how “bunching” at year end can maximize clients’ tax benefits, and at the same time ensure that nonprofits are supported as demands on their missions continue to grow in choppy economic waters.
Year-end giving deadlines are firm
Watch the calendar closely! Year-end can sneak up on all of us, and it’s important not to miss key deadlines for accomplishing your clients’ charitable goals.
- Cash or Check Gifts: Donors can physically deliver their gifts to the PACF office by 3:00 p.m. on Dec. 30 or they can mail their checks, postmarked on or before Dec. 31.
- Credit Card Gifts: Donors can visit our website, www.pacfwv.com/donate, to make a secure online donation before midnight on Dec. 31.
- Securities (Stocks, Bonds, Mutual Funds) Gifts: The effective date of these gifts for tax purposes depends on how the gift is delivered. Contact the PACF as soon as possible for specific instructions.
- Gifts made under the Charitable IRA Act: The PACF must receive the gift directly from the plan administrator by Dec. 31. While these gifts are not tax-deductible, they may offer income tax benefits for 2022 by reducing donors’ taxable income.