Maximize Your Giving and Minimize Your Taxes
As the holiday season approaches, we wanted to highlight some strategies to make your charitable gifts more impactful while reducing your tax burden.
Qualified Charitable Distributions (QCDs)
If you're required to take Required Minimum Distributions (RMDs) from your retirement account, consider a Qualified Charitable Distribution (QCD). By directly gifting a portion or all of your RMD to a qualified charity, you can:
Satisfy your RMD obligation.
Avoid paying income tax on the gifted amount.
Donating Appreciated Stock
If you own appreciated stock in a taxable investment account, donating it directly to a qualified charity can offer significant tax benefits. By doing so, you can:
Avoid paying capital gains tax on the appreciated value of the stock.
Receive a charitable deduction for the fair market value of the stock.
Gifting to loved ones
This year, the annual gift tax exclusion allows an individual to give up to $18,000 to any one person without needing to report it to the IRS. Married couples can combine their exclusions, allowing them to gift up to $36,000 ($18,000 each) to a single individual without reporting.
2024 Monterey County Gives Campaign
Starting November 14th, the Community Foundation for Monterey County will launch its annual Monterey County Gives campaign. This event supports over 200 local nonprofits by providing a matching pool of funds.
Consider using a QCD to maximize your impact and minimize your tax liability during this campaign. By gifting a portion of your RMD directly to a participating nonprofit, you can double your donation's impact.