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 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're over over the age of 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 PACF. 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 Funds to do as much good as possible:
The team at the PACF can help you maximize your already-established Donor Advised Fund (DAF), or set up your own DAF if you are not yet a Foundation fundholder. Please reach out to us to learn more about how “bunching” at year-end can maximize the tax benefits of your DAF, and at the same time ensure that nonprofits are supported as demands on their missions continue to grow in choppy economic waters. Grantmaking from DAFs continues to rise, especially as donors catch on to the ways a DAF can help with tax planning and, importantly, keep your giving levels consistent even in your lower income years.
4. Watch the calendar:
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 PACF 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.
- 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.
We look forward to hearing from you soon about creating a gift of giving for someone you love!