As attorneys, CPAs, and financial advisors, you are well aware that the last couple months of the year are very busy with clients’ tax planning! It’s also a busy time for charitable giving. A whopping percentage of online giving happens in December. The Community Foundation team is honored to work closely with you and your clients on year-end giving strategies. Here are seven reminders to keep in mind as you work with clients in the busy weeks ahead.
Where have we been?
Before launching into year-end plans, encourage clients to review their giving history since January. Many people misremember how much they have already contributed or overlook smaller recurring gifts. Reviewing prior donations helps identify gaps and opportunities to make intentional year-end gifts that align with personal values.
What are the rules?
This is a great time to remind clients that only gifts to qualified 501(c)(3) public charities are tax-deductible. Donors sometimes assume that all community initiatives qualify, so a quick check using IRS tools or by working with the Community Foundation for Northern Virginia can avoid disappointment later.
What assets to give?
Remind clients that donating appreciated securities or other long-term assets to their donor-advised or other type of fund at the Community Foundation can eliminate capital gains tax while providing a charitable deduction for the fair market value. This strategy is often more tax efficient than selling the assets and donating cash.
When to give?
Encourage clients to act early when transferring non-cash gifts, or really any gift, to their donor-advised or other type of fund at the Community Foundation. Stock transfers, complex assets, and donor-advised fund contributions can take extra time to process before year-end. Initiating those steps well before December 31 helps ensure the gift counts for the current tax year.
Who is giving?
For clients who are age 70½ or older, be sure to evaluate the possibility of Qualified Charitable Distributions from IRAs, up to $108,000 per taxpayer in 2025, which can reduce taxable income. These gifts must go directly from the IRA to a qualified charity, including some types of funds at the Community Foundation (excluding donor-advised funds).
How much to give?
Talk with clients about using their donor-advised funds to potentially “front-load” or “bunch” charitable contributions into 2025 to maximize tax benefits in light of new laws that will kick in next year.
Why give?
Encourage clients to think beyond tax savings. The most meaningful charitable plans grow out of purpose and connection, not just deductions. The team at the Community Foundation can help your clients make a big difference in the causes that matter most to them. Our team can also help clients involve family members in their philanthropy and help clients align charitable giving with broader legacy goals.
Where to give?
Remind clients that local expertise matters. Working through the Community Foundation helps ensure that clients’ generosity benefits the community they care about. Our team is deeply rooted in the community and keeps a finger on the pulse of how charities in our region are improving the quality of life for everyone. We are always happy to be a sounding board!
We look forward to working with you and your clients! This email address is being protected from spambots. You need JavaScript enabled to view it. to learn more on how we can make more possible for Northern Virginia.
Questions?
Questions?
