The end of the year is a well-documented season of anxiety for many people, but meeting 2023 charitable goals does not have to be stressful. Tidewater Jewish Foundation is prepared to help donors get even more connected to the causes that are important to them, while maximizing tax benefits, without stress.
Working through the list of organizations important to a donor is a helpful and positive start. The TJF’s team can help individuals and families accomplish charitable giving objectives efficiently, effectively, and joyfully, including tapping into tax benefits.
Key considerations for year-end tax planning:
Use appreciated assets to make a charitable gift in 2023. As in previous years, gifts of long-term appreciated assets (stock) remain a best practice. Such gifts not only provide a deduction to the donor but also avoid the capital gains tax. Conversely, built-in loss assets generally should be sold (generating a tax loss) with the resulting cash proceeds donated, if desired.
Consider donating to a Donor-Advised Fund (DAF) for maximum flexibility. DAFs facilitate a significant donation to charity over time and can provide a charitable income tax deduction today. Consider adding funds to an existing DAF or opening a new DAF.
Look into an IRA charitable rollover. The IRA charitable rollover, also known as a Qualified Charitable Distribution or QCD, is an attractive option because it can help satisfy the minimum distribution requirement without incurring income tax, even for those who don’t itemize deductions.
As with any significant tax and charitable planning, it is always advisable to carefully consider potential changes in the context of a complete financial profile and to consult a professional tax advisor.
As the year ends, make a difference in Tidewater and the world at large. Whether starting a new fund or contributing to an existing one, TJF is committed to helping donors achieve their charitable goals, with the understanding that one’s generosity has the ability to enrich lives and strengthen the fabric of Tidewater’s Jewish community.
For more information on how to optimize year-end giving and to learn why waiting until the end of the year to complete giving has a silver lining, contact Naomi Limor Sedek, president and CEO, Tidewater Jewish Foundation, at 757-965-6109 or firstname.lastname@example.org.