As the end of the year approaches, individuals and families are considering ways to maximize the financial benefits of their charitable giving. Tidewater Jewish Foundation offers guidance to help donors make informed decisions that align with their financial goals while also supporting the community.
“Year-end giving strategies can help donors significantly reduce their tax liability while supporting meaningful causes,” says Randy Parrish, TJF vice president and CFO. “With careful planning, donors can utilize charitable tools that provide substantial tax savings and amplify the financial advantages of their contributions.”
TJF partners with donors and their financial advisors or attorneys to create personalized giving strategies. One effective option is to donate appreciated assets, such as stocks, directly to TJF. This approach allows donors to bypass capital gains taxes while securing a deduction for the asset’s total market value.
“Gifts of appreciated assets can reduce a donor’s taxable income, providing a financial benefit to the donor and enabling impactful giving,” says Parrish.
For donors over 70½, Qualified Charitable Distributions (QCDs) present another opportunity. Donors can transfer up to $105,000 in 2024 from an IRA directly to certain charitable funds to satisfy their Required Minimum Distributions without incurring additional income tax. This tax-efficient strategy enables donors to leverage their retirement funds for philanthropic purposes without impacting their taxable income.
The Virginia Education Improvement Scholarship Tax Credit Program offers another financial incentive. By contributing to this program before year-end, donors receive a 65% tax credit on their Virginia taxes for 2024. “The tax credit program is a powerful tool for year-end giving,” says Parrish, a licensed CPA. “It offers a substantial tax credit for donors while supporting scholarships for Jewish day school students—a true win-win.”
Parrish says that “now is the ideal time to explore these options. By planning your giving before year-end, you can maximize the financial benefits and position yourself for a strong start in 2025.”
Along with donors’ financial advisors or attorneys, TJF can help create a plan to optimize tax savings and achieve meaningful impact.
TJF does not offer tax advice. For more information, contact Naomi Limor Sedek, TJF president and CEO at 757-965-6109 or nsedek@tjfva.org, or Randy Parrish at 757-965-6104 or rparrish@tjfva.org.