This post is part of our “Smart Giving” series of informational articles for professional advisors from CCF’s Professional Advisors Council.
As we move through the final stretches of tax season, the team at CCF wanted to pass along a few quick tips from our PAC to share their insights on how to maximize tax efficiencies and support the causes they care about in a more meaningful way in our Smart Giving Snapshot. Whether you’re managing investments, looking to maximize your philanthropic impact, or thinking about your legacy, here are several smart strategies to keep in mind throughout the year:
- Qualified Charitable Distributions (QCDs): Individuals aged 70½ or older can donate up to $100,000 annually directly from their IRA to a qualified charity—satisfying required minimum distributions (RMDs) without increasing taxable income.
- Gifts of Appreciated Stock: Donating long-term appreciated securities allows donors to avoid capital gains tax and claim a charitable deduction for the full fair market value of the stock.
- Donor-Advised Funds (DAFs): Contribute assets to a DAF for an immediate tax deduction, then recommend grants to charities over time—ideal for timing tax benefits while planning future giving.
- Charitable Bequests in Estate Plans: Including charitable gifts in a will or trust can reduce estate taxes while leaving a legacy aligned with personal values.
- Making Charitable Gifts from a Business: Business owners can make deductible charitable contributions directly from their company, potentially reducing corporate taxable income while supporting causes that align with their values.
We are so thankful to serve as Cambridge’s home for philanthropy and are happy to identify how to maximize your impact through smart giving. For more information about how CCF can partner with you to meet your philanthropic goals, contact Michal Rubin at [email protected].
