Year-End Charitable Giving Strategies

In this season of giving, as you consider last-minute 2019 charitable contributions, Grassi’s tax advisors recommend keeping the following tax-savings strategies in mind:

  • If you are getting close to the itemizing threshold, consider bunching contributions that you planned to make over several years. The tax benefits of this strategy will be especially helpful if you expect your 2019 income to push you into a higher tax bracket.
  • Non-cash charitable gifts, such as appreciated stock, can provide a major tax-savings vehicle, as well as the opportunity to reallocate your portfolio, reduce capital gains, minimize taxable income and support other tax-effective financial strategies.
  • For IRA holders who are 70½ years or older, qualified charitable distributions (QCDs) of up to $100,000 can be made to qualifying organizations without incurring a taxable event. QCDs also lower your adjusted gross income and could help you meet all or part of your required minimum distributions. Remember: while the QCD amount is not taxed as income, you may not also claim the distribution as a charitable tax deduction.
  • If you want to make year-end charitable gifts but are unsure of which charities you want to support, consider donating a lump sum to a donor-advised fund by December 31. You will receive the charitable deduction for 2019 and gain not only time to decide where you want the funds to go but also potential growth on your investment, making even more funds available for charitable giving.

For more information on your year-end charitable giving and tax-savings strategies, please contact a member of our Tax Services team.

Dorothy McAuliffe Dorothy McAuliffe is a Senior Tax Manager in Grassi’s Cannabis Advisory practice. She has more than 18 years of experience helping small businesses, entrepreneurs, professional services firms and high-net-worth individuals plan and achieve their tax savings goals. Dorothy specializes in tax advisory, controversy, planning and compliance for businesses faced with complicated federal, state and local, and sales and use tax issues. She advises Cannabis... Read full bio