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Three Charitable Insights for Year-End Giving

As the year winds down and your schedule fills up, you may not have much time to dive deeply into every update about charitable giving. However, staying aware of a few key trends and strategies could make a meaningful impact on your clients’ philanthropic goals. The team at the community foundation has pulled together three important insights that might be worth a quick glance before you close out the year.

If you only have 60 seconds to spare, here are some quick updates to keep your clients’ charitable plans on track!

Best Practices for Donating to Hurricane Relief Efforts

With recent natural disasters, many clients are looking to contribute to hurricane relief efforts. While this generosity is wonderful, even disaster-related giving comes with its own set of tax rules and considerations. The IRS has specific guidelines around “qualified disaster relief,” which apply to both donors and the recipient charitable organizations.

Encourage your clients to be sure their donations are directed to legitimate, impactful efforts. The community foundation is well-versed in coordinating disaster relief contributions, especially when they are needed locally. For disasters in other regions, we collaborate with partner foundations nationwide to ensure contributions go where they’re most needed. We can help your clients make the most of their giving while keeping their charitable intentions compliant with tax regulations.

Charitable Giving as a Bridge Between Generations

The recently released Bank of America Private Bank Study of Wealthy Americans highlights a changing perspective on wealth across generations. The findings reveal a gap in how different age groups view wealth—and what this means for inheritance planning. While older generations may still view wealth largely in financial terms, younger generations are increasingly defining “wealth” as the ability to lead a purposeful life and make a difference.

This divide in definitions of wealth can lead to a disconnect in inheritance expectations. Older generations may not plan to leave the inheritance that their younger family members anticipate, which could create family tension or misunderstandings.

To bridge this gap, consider discussing multi-generational charitable giving plans with your clients. By setting up a family-oriented charitable plan through the community foundation, you can help families clarify expectations and foster a sense of shared purpose. This allows each generation to contribute meaningfully, keeping family members engaged in preserving and growing the family’s wealth legacy.

Tips for Clients’ Year-End Giving

As the year comes to a close, it’s easy for clients to overlook charitable giving amidst other pressing financial matters. Yet year-end donations often hold the key to significant tax benefits. Here are three essential techniques to keep in mind as you guide your clients through their year-end giving options:

Encourage Gifts of Appreciated Stock Over Cash: When clients contribute highly-appreciated stock to their community foundation fund, they can maximize their tax benefits. Donating stock avoids capital gains taxes and lets them contribute more value to the charity without the added tax burden.

Consider the Bundling or Bunching Strategy: Given the current high standard deduction, many clients may benefit from a bundling strategy, where they make a larger charitable contribution in one year to exceed the deduction threshold, enabling them to itemize. They can direct these funds to a donor-advised fund at the community foundation to support their favorite causes in smaller, manageable distributions.

Qualified Charitable Distributions (QCDs) for Clients 70½ and Older: For clients over the age of 70½, QCDs provide a fantastic opportunity to make direct contributions from IRAs to certain funds at the community foundation, up to $105,000 per spouse. This approach satisfies required minimum distributions (RMDs) while keeping taxable income low. Note, however, that QCDs can’t be directed to donor-advised funds; instead, clients may consider designated or field-of-interest funds.

Let the Community Foundation Help You Navigate Year-End Charitable Planning

We know how busy things can get as the year winds down, and your clients rely on you to keep their charitable giving both impactful and tax-efficient.

With the right strategies in place and some help from AACF, you and your clients can make the most of this giving season and end the year right.