Reflecting On & Sharing Our Thankfulness
With Thanksgiving approaching, we begin reflecting on the many blessings in our lives. As we reflect on our blessings with a posture of gratitude, we begin to consider how we can help those in need. This season of thankfulness presents the perfect opportunity to embrace the spirit of giving back through charitable gifting.
Charitable giving allows us to connect our actions with our thankfulness by supporting causes that are important to us. Whether you wish to honor family traditions or support a meaningful organization, there are numerous ways to give. We’ve provided a quick snapshot of those options below.
Monetary Charitable Giving
1. Outright Gifts
- Cash donations to your favorite charity are very popular and easy to make.
- Donating highly appreciated assets such as stocks, mutual funds, or Exchange Traded Funds (ETFs) can be a very tax-efficient way for you to give. You receive a tax deduction and avoid any capital gains tax. For the charitable organization, it’s just like receiving cash because they don’t pay any capital gains!
2. Qualified Charitable Distributions (QCDs)
- If you’re age 70½ or older, you can give up to $108,000 annually directly from your IRA to a qualified charitable organization. For married couples, you can double the limit and gift $216,000 directly from your IRAs.
- QCDs become extremely valuable once you turn 73 and need to satisfy your annual Required Minimum Distribution (RMD). Gifting at that time through a QCD helps satisfy your RMD and reduces your taxable income.
3. Donor-Advised Funds (DAFs)
- Give now and decide which charity to give to now or later. With a DAF, you can contribute highly appreciated assets, receive an immediate tax deduction, and make charitable gifts to your charities over many years.
- You can also make your DAF a multigenerational entity, which will allow your children and grandchildren to continue on your family’s charitable goals.
4. Employer and Corporate Programs
- Many companies sponsor charitable programs, enabling you to amplify your impact through donation matching or shareholder-directed giving.
Non-Monetary Giving: Your Time
- While the charitable organization may not experience a financial impact, volunteering is an extremely valuable gift to many charitable organizations. Often, charitable organizations rely on selfless individuals and families to help advance their mission.
The Benefits of Giving
- Personal Fulfillment: Giving is a meaningful expression of gratitude that enriches your life and the charitable organization’s mission.
- Legacy Building: Charitable giving can instill values for future generations while ensuring your charitable organizations are around for generations to come.
- Community Impact: Supporting charitable organizations helps strengthen community resilience and well-being.
- Tax Savings: Many charitable gifts provide direct tax deductions or capital gains benefits.
At Paradigm, we are thankful for every one of you. As we enter the holiday season, we wish you and your family a season filled with gratitude, warmth, and generosity!
If you are interested in learning more about any of these charitable giving options, please do not hesitate to reach out. The Paradigm team is more than happy to discuss any of these options in more detail.