Are you feeling charitable this holiday season? If so, you’re not alone: According to the Center on Philanthropy at Indiana University, nearly one-quarter of charitable giving takes place between Thanksgiving and New Year’s Day.
If your plans include writing out donation checks, did you know there are other ways to give back? Here are some ideas:
Do you have any shares that have appreciated in value? By gifting this stock, you can avoid paying capital gains taxes. There are other tax considerations, however, so be sure to check with your tax professional before making any decisions.
Funds in Your IRA
A qualified charitable distribution (QCD) allows you to give directly from your Individual Retirement Account to a charity, which might satisfy any minimum distribution requirements you may have. There are age and maximum distribution rules for this type of gift, so you’ll want to discuss this strategy with your financial advisor. Also, be sure the charity meets IRS guidelines – for more information, visit www.irs.gov.
Did you know that, according to the IRS, you can deduct 14 cents for every mile you drive in service to a charitable organization? You could help out your favorite charity and enjoy a tax deduction as well. You’ll want to check with your tax professional on the best way to log your miles.
No matter how you decide to give this holiday season, it should be right for your and your family’s financial situation. Your financial advisor can work with your tax and legal professionals to go over your options and discuss how your plans could affect your overall financial strategy.
Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.