Looking for ideas to maximize your end of year giving? Follow along with us as we cover 12 tips for giving this Christmas season.
Missed the tips from days 1-4? Check them out here!
Day 5: Donate your RMD
Have you considered donating your Required Minimum Distribution (RMD) from your retirement accounts (like your IRA) to charity? Not only can you fulfill your philanthropic goals, but you can also receive potential tax benefits.
Here’s how you can use your RMD to donate to charity:
1. Check with the charity to see if they accept RMDs (the Foundation does!). Some charities may not accept RMDs as a form of donation, so it is important to confirm before you proceed.
2. Calculate the amount you want to donate. Your RMD must be taken in the year you turn 70½ or older, so plan ahead.
3. Contact your financial institution and let them know that you want to donate a portion of your RMD to charity.
4. Fill out the necessary forms to transfer the funds from your RMD to the charity.
5. Ensure that you keep all the necessary paperwork and receipts in case the IRS requests proof of the donation.
6. Check your tax return and confirm that the donation was recorded as part of your RMD.
Aside from donating your RMD directly to a charity, you can also use it to create a fund at the Foundation. While you can’t donate your RMD to a Donor Advised Fund, some donors use their RMD to build up the balance of a Family Endowment. You can build the balance over a number of years before the endowment begins to grant, or simply use your annual RMD to increase the balance of an endowment that’s already granting.
Day 6: Utilize Workplace Matching Programs
Check to see if your company has a matching program for donations to charity. Many companies will match your tax-deductible gift up to a certain amount. Make sure you max out this opportunity to double your impact. Most of these opportunities expire by year end, so take advantage today!
Day 7: Sell Depreciated Securities & Donate the Proceeds
Do you have stocks, bonds, or mutual funds that are worth less today than when you bought them? You may get a tax advantage if you sell them and then donate the cash to charity. In addition to the potential tax benefit of the charitable donation, “[y]ou can use capital losses to offset any tax liability due from gains on other securities and may also be able deduct net capital losses on income taxes.” (source)
Do you have securities that have appreciated? The Foundation can accept them! If you want to donate securities, contribute them to any fund at the Foundation. Many donors like to donate to their Donor Advised Fund and then use the proceeds to grant to the organizations they already know and love.
Opening a DAF at the Foundation may only take a matter of days. Contact us to get the process started today!
Day 8: Cryptocurrency
Do you have cryptocurrency you’d like to donate? The Foundation accepts donations of crypto! If you want to donate to a charity that can’t accept crypto, you can always use a Donor Advised Fund (DAF). Donate your cryptocurrency to your DAF and then use your DAF to grant to many different organizations. There is no time limit for granting from your DAF and the Foundation can grant to Catholic and non-Catholic charities all over the US.