donate

Charitable Giving Strategies

If you have been looking for ways to give back this summer, you might want to try something different. The majority of people donate to charitable organizations through gifts of cash, but this may not be the most tax-effective way to make a gift. Many people have appreciated assets such as stock, mutual funds, etc. which can be ideal charitable gifts for many reasons.

You may want to consider a charitable donation of your appreciated assets which will avoid capital gains tax and also qualify you for a tax deduction equal to the value of the assets as of the date of the gift. Another option is a donor-advised fund, to which you can donate complex assets such as private company stock, LLC interests, real estate or even common investments; these assets will be monetized by the provider. Donating to a donor-advised fund will give you an immediate tax benefit in the year of the gift, and deductions exceeding the allowable limits can generally be carried forward for up to five years. However, donor-advised funds will allow you to make donations from the fund to individual charities over time, as you direct.

Your donated assets can also appreciate further in the fund with no capital gains tax to you, and you can continue to support your favorite charities for many years into the future. Your donor-advised funds can even be taken over by your heirs as long as there are assets remaining in the funds. So if you decide to support your favorite museums, nature conservancies, or any other charities of your choosing, you may want to consider a strategic charitable donation with added benefits.

Categorized: Taxes

Tagged In: , ,

About the Authors

Stay Connected

Associate

Kathryn E. Szewczyk

Katie Szewczyk is an attorney in the firm’s Estate & Tax Planning practice area helping clients – especially ones in MetroWest and central Massachusetts ­- with estate planning and related tax issues, long-term care planning, special needs and disability planning as well as business succession planning. Katie guides her clients through the estate planning process, from initial meeting and drafting to the execution of documents. She handles estate and trust administration, elder law, probate litigation and other estate and trust matters, such as:

  • Re-titling of assets to optimize estate tax savings
  • Managing probate matters, such as formal and informal estate administrations, guardianships and conservatorships, including contested proceedings and those dealing with Rogers Authority guardianships
  • Drafting Intentionally Defective Grantor Trusts for succession and inheritance planning of multiple family businesses
Stay Connected

More Posts by Author ›

About the Authors

Stay Connected

Associate

Kathryn E. Szewczyk

Katie Szewczyk is an attorney in the firm’s Estate & Tax Planning practice area helping clients – especially ones in MetroWest and central Massachusetts ­- with estate planning and related tax issues, long-term care planning, special needs and disability planning as well as business succession planning. Katie guides her clients through the estate planning process, from initial meeting and drafting to the execution of documents. She handles estate and trust administration, elder law, probate litigation and other estate and trust matters, such as:

  • Re-titling of assets to optimize estate tax savings
  • Managing probate matters, such as formal and informal estate administrations, guardianships and conservatorships, including contested proceedings and those dealing with Rogers Authority guardianships
  • Drafting Intentionally Defective Grantor Trusts for succession and inheritance planning of multiple family businesses
Stay Connected

More Posts by Author ›

Stay Connected

Subscribe to Blog

Enter your email address to subscribe to this blog and receive notifications of new posts by email.