Charitable Giving
Many individuals find meaning in giving, whether it’s through supporting a cause they believe in, expressing gratitude for their own blessings, or leaving a legacy that makes a lasting impact. The act of charitable giving is deeply personal, and with the right planning, it can be both fulfilling and financially rewarding.
The tax code offers incentives for charitable donations, allowing you to maximize the impact of your gifts while reducing your taxable income. Whether you’re looking to make a difference during your lifetime or leave a charitable legacy, charitable gift planning can help you work towards your goals.
Why Charitable Gift Planning Is Essential
Charitable gifting is more than an act of generosity—it can also be a strategic way to manage your wealth and minimize your tax liability. For those with significant estates, charitable gifts can help reduce the estate’s value, potentially lowering estate taxes.
Tax deductions for current contributions can provide financial relief, while charitable gifts made from your estate can help ensure that your wealth is distributed according to your wishes while aiming to minimize tax burdens for your heirs. Charitable giving can also serve as a meaningful way to share your good fortune, seeking to ensure that your legacy continues to support your values for generations to come.
What We Can Do For You
At our firm, we help you incorporate charitable giving into your financial plan in a way that strives to maximize both the tax benefits and the impact on your chosen causes. Here’s how we can help:
- Qualified Charitable Distributions (QCDs): For individuals aged 70½ or older, we guide you through the process of making tax-free charitable donations directly from your IRA. QCDs allow you to support charities while reducing your taxable income, all without needing to itemize deductions.
- Donor-Advised Funds (DAFs): DAFs are a powerful tool for those who wish to give over time but want the flexibility to make contributions in a tax-efficient manner. We can help you establish and fund a DAF, providing you with the opportunity to donate appreciated assets while deferring the actual distribution of those funds to the charities of your choice.
- Estate Planning with Charitable Intent: We work alongside your Estate Planning attorney to integrate charitable giving into your estate plan. By designating charitable beneficiaries in your will or trust, we can help reduce the taxable value of your estate, seeking to ensure that your charitable legacy is carried out according to your wishes and minimizing estate taxes for your heirs.
- Customized Charitable Gifting Strategies: Whether you're gifting appreciated assets, establishing a charitable trust, or making a one-time donation, our team will tailor strategies to align with your financial goals and philanthropic objectives. We strive to ensure that your gifts provide the maximum possible benefit to both you and the organizations you wish to support.
Charitable gift planning is an opportunity to leave a meaningful impact while working towards optimizing your tax situation. With the right strategies in place, your generosity can benefit not only the causes you care about but also your long-term financial health.
Let us help you develop a plan that aligns your giving with your financial goals, aiming to maximize both your charitable impact and the tax benefits you receive.
For more information of charitable planning, please contact us today.
Bishop Financial Advisors and LPL Financial do not provide tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.