As the year draws to a close, it’s the perfect time to reflect on the causes that matter most to you—and to take advantage of tax incentives that can make your generosity go even further. Thoughtful planning now can help you create meaningful impact in our community while optimizing your financial benefits.
Here are three smart strategies to consider before December 31:
1. Bunch Your Gifts and Give with Intention
One powerful approach is “bunching”—combining two or more years of charitable contributions into a single tax year. This can help you exceed the standard deduction threshold, allowing you to itemize and claim a larger deduction.
Consider placing your full gift into a Donor-Advised Fund (DAF) at the Community Foundation. You’ll receive immediate tax benefits while maintaining the flexibility to recommend grants over time—next month, next year, or whenever you choose.
2. Use Appreciated Stock for Bigger Impact
Donating long-term appreciated assets like stocks or mutual funds is one of the most tax-efficient ways to give. By contributing these directly to the Community Foundation, you avoid capital gains tax and can deduct the full fair-market value.
This strategy not only amplifies your giving power but also helps you rebalance your portfolio with ease.
3. Consider a Qualified Charitable Distribution (QCD)
If you’re 70½ or older, you can make a gift directly from your IRA through a Qualified Charitable Distribution. QCDs count toward your Required Minimum Distribution (RMD), reduce taxable income, and allow you to give up to $108,000 per person annually. This is an excellent option for those who no longer itemize but still want their giving to make a lasting difference locally.
Don’t Wait—Timing Is Everything
To qualify for 2025 tax benefits, all gifts must be completed by December 31:
- Stock gifts: Begin transfers by mid-December to avoid delays.
- QCDs: Submit requests to your IRA custodian as soon as possible.
- Checks or online gifts: Must be postmarked or completed online by midnight, December 31.
Whether you want to support local nonprofits, create a lasting legacy, or explore strategic giving options, we’re here to help every step of the way.
Contact Amanda Sosa amanda@otsegofoundation.org by email or call the office at 989-731-0597 to discuss your goals and discover how we can work together to make a meaningful impact.