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Year End Giving
Year End Giving – Thoughful Charitable Gift Planning for 2021
Sharon Kenigsberg | Director of Community Development, Jewish Long Beach
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Fall is in the air and soon Thanksgiving and Chanukah will be here. We look forward to spending time with family and friends as the secular year of 2021 comes to a close. The end of the 2021 also provides us with an opportunity to consider financial and tax planning strategies to help the charities we care about. Giving a gift through Jewish Long Beach allows you to designate gifts for multiple charitable organizations. A few strategies appear below.
Gifts of Appreciated Stocks and Securities
As in previous years, giving appreciated assets (stock) remains a best practice. With the proposed retroactive increase in the capital gains tax rates, charitable donations of appreciated assets are more valuable than ever, providing not only a deduction to the donor but also the potential to avoid the higher capital gains tax.
If you are interested in gifting stocks for charitable purposes, Jewish Long Beach can help you arrange a direct transfer into our brokerage account.
IRA Distribution-Required Minimum Distributions (RMD) are back
The new age for being forced to take an RMD is now 72. However, the Qualified Charitable Deduction is still available from the age of 70 ½ and is an excellent way to remove IRA assets from your estate if you are charitably inclined. Many donors have used the IRA charitable rollover to transfer funds from their retirement accounts directly to qualified public charities. This option can satisfy the RMD requirement without incurring income tax, even if you don’t itemize your deductions. Additionally, a charitable contribution made directly from a RMD will lower your Adjusted Gross Income and have the potential to reduce your Medicare premiums.
Open a Donor Advised Philanthropic Fund (DAPF)
Do you give to multiple charities over the course of a year? Would you be interested in having one convenient way to give to all your charities? If so, then a DAPF may be for you. By opening a DAPF at Jewish Long Beach before December 31, you will be able to receive a charitable tax-deduction this year.
A DAPF allows you the flexibility of opening the fund in one year and then recommending distributions to any IRS approved nonprofit organization when it is convenient for you. Establish your personal DAPF through Jewish Long Beach with $2,000 or more, in cash or securities. Additional contributions of any amount can be made at any time and are also tax deductible.
Annual Gifts & We are Here to Help
If you have not yet made your annual gift for 2021, or if you want to give now for 2022, year-end is a perfect time to do so. Your annual gift allows the agencies you care about to recover from the challenges of the pandemic and provide an essential safety net of services. Whatever type of gift or whatever organization(s) you choose to support, the Jewish Long Beach professional staff is available to help you meet your charitable goals. Please call Sharon Kenigsberg at 562.426.7601 ext. 1008 or sharonk@ jewishlongbeach.org. more information.
Disclaimer: Much of the information in this article comes from Jewish Federations of North America (JFNA). JFNA and Jewish Long Beach do not provide legal or tax advice. Please consult with your own legal or financial professional regarding your unique tax situation.
