Charitable Giving Options Overview

Are you overwhelmed by the numerous causes you want to support and don’t know where to start? You’re not alone! While the desire to give back is strong, navigating the diverse landscape of charitable giving can be daunting. But it doesn’t have to be. This blog post explores the world of charitable giving options, empowering you to align your values with impactful giving in ways that suit your unique goals and preferences.

Here are some specific strategies to consider:

  • Donate Appreciated Assets: Consider contributing long-term appreciated securities, such as stocks, mutual funds, bonds, real estate, or private company stock. This method can be more tax-efficient than cash donations, allowing you to give more effectively.
  • Donor-Advised Funds (DAFs): A DAF is a dedicated charitable investment account. By contributing to a DAF, you can receive an immediate tax deduction and have the option to grow your funds tax-free, later directing them to qualified charities.
  • Strategic Timing of Contributions: Align your giving with your financial landscape. For example, during years with higher income, larger contributions can offer substantial tax benefits. This strategy can be especially effective when contributing to a DAF.
  • Qualified Charitable Distributions (QCDs): Those  70½ years or older can direct up to $100,000 tax-free from traditional IRAs to qualifying charities as QCDs.

Additionally, consider a few key best practices:

  • Donate to Recognized Charities: Ensure your contributions go to IRS-acknowledged charities to qualify for deductions.
  • Understand Deduction Limits: Familiarize yourself with the limits on deductions, which typically allow for up to 60% of your adjusted gross income.
  • Document Your Contributions: Maintain thorough records of your donations for tax purposes, including copies of W-2s or pay stubs for payroll deductions.

The most important aspect of charitable giving is aligning your contributions with your passions and goals. Research different options, consult with a financial advisor if needed, and choose a method that resonates with you. By venturing beyond the traditional check, you unlock a world of possibilities to make a meaningful difference, leaving a positive mark on the world while potentially reaping personal benefits along the way. So, explore, experiment, and discover the joy of giving in a way that empowers both you and the causes you cherish!


The Trademark Capital® Team

This material is intended for informational purposes only and should not be construed as legal, accounting, tax, investment, or other professional advice. Trademark Capital’s investment strategies are built using quantitative, proprietary algorithms that are designed to identify and react to changing market conditions. However, investors should be aware that no investment strategy or risk management technique can guarantee returns or eliminate risk in any given market environment. As with all investments, Trademark Capital Management’s investment strategies are subject to risk and may lose money. The investment strategies presented are not appropriate for every investor and individual clients should review with their financial advisors the terms and conditions and risk involved with specific products or services. Due to our active risk management, our managed portfolios may underperform during bull markets. Past performance is no guarantee of future results.

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