Quick Tips For Year-End Giving

December Tip:

For many, the final season of the year is a time to count your blessings and to give back. It’s no wonder that it’s often called the “giving season.”

And year-end planning is an important ritual for many individuals who coordinate their tax preparation and charitable giving. Through creative gift planning, you may be able to do more for yourself and for the causes that matter to you.

Read on for 5 tips to help make the most of your year-end giving and maximize the impact of your charitable investment:

1. Review timing of your charitable gifts
With your advisor, discuss the optimization of charitable deductions considering your projected income level and tax rate this year and future years.

2. Consider opening or adding to a Donor Advised Fund
Transferring assets to a Donor Advised Fund at Fairfield County’s Community Foundation can allow you to receive an immediate charitable income tax deduction, generating tax benefits at the maximum amount allowed for gifts to public charities. The decision as to which charities to benefit can be extended beyond the year of the gift.These charitable funds are one of the easiest and most tax-advantageous ways to support your favorite nonprofits. And as a partner of the Community Foundation, you’ll have access to our nonprofit expertise and connections, and can receive personalized philanthropic guidance. Learn more about Donor Advised Funds here.

3. Do you have more than enough?
You can donate IRA distributions to a nonprofit. Individuals over age 70 are permitted to exclude from income up to $100,000 of their required minimum distribution (RMD) where the RMD is paid directly to a qualified charity. For married individuals filing a joint return, the limit is $100,000 per individual IRA owner. Most public charity recipients are considered qualified charities, while private foundation organizations and Donor Advised Funds are not.

4. More savings with gifts of appreciated securities!
Many donors are surprisingly unaware that they can give shares of appreciated stocks or mutual funds and enjoy greater tax savings than with a comparable cash gift. If you have owned the securities for at least one year, your gift will not trigger any capital gains tax, regardless of how much the securities may have appreciated in value over time.You can make stock transfers to Fairfield County’s Community Foundation as a gift to our Community Impact Fund, or to your existing Donor Advised or Scholarship Fund.

5. Check your beneficiaries
Many people experience a significant life event and never consider the need to update their beneficiary designations on retirement accounts or life insurance policies. You might wish to consider adding a charity – such as your Donor Advised Fund or FCCF’s Community Impact Fund – as a partial beneficiary (5 percent or more) of your retirement account or life insurance for possible tax savings.

November Tip:
Set up or add to your Donor Advised Fund for an immediate income tax deduction and provide immediate and future gifts to your favorite nonprofits over time. These charitable funds are one of the easiest and most tax-advantageous ways to support your favorite nonprofits. And as a partner of the Community Foundation, you’ll have access to our nonprofit expertise and connections, and can receive personalized philanthropic guidance.

Learn more about Donor Advised Funds here.

October Tip: 
Many donors are surprisingly unaware that they can give shares of appreciated stocks or mutual funds and enjoy greater tax savings than with a comparable cash gift. If you have owned the securities for at least one year, your gift will not trigger any capital gains tax, regardless of how much the securities may have appreciated in value over time.

You can make stock transfers to Fairfield County’s Community Foundation as a gift to our Community Impact Fund, or to your existing Donor Advised or Scholarship Fund.

September Tip:
If you are an IRA owner over age 70½, you may make a gift from your IRA directly to a qualified charity – including the Community Foundation. The maximum IRA charitable rollover gift is $100,000 per year. An IRA charitable rollover gift can help satisfy your required minimum distribution, reduce your taxable income, and further the work of a charitable organization.

Year-end planning is an important ritual for many individuals who coordinate their tax preparation and charitable giving. Through creative gift planning, you may be able to do more for yourself and for the causes that matter to you.

As always, the staff at Fairfield County’s Community Foundation is here to help you. Whether you have a question about a nonprofit in your community, are interested in establishing a Donor Advised Fund, or would like to make a gift to our Community Impact work, please don’t hesitate to contact:

Joseph Collin, Vice President of Philanthropy
JCollin@FCCFoundation.org and 203.750.3211