Streamline Your Charitable Giving

by CB Mason

When people find out that I work for a registered investment advisor, I first clarify "but-I-don't-deal-with-any-investments-or-portfolios" to head off any "technical" questions. Then I describe the three main areas of wealth management where we help our clients. Beyond (1) retirement planning (building wealth for the long-term so you have sufficient funds to give yourself a "paycheck" in retirement), we help with (2) estate planning (end-of-life planning from how your remaining wealth will be distributed to continuing your legacy of charitable giving) and (3) reaching specific financial goals (things like making a major purchase, funding wanderlust adventures, or even paying for college for the kids or grandkids), all with an eye for being tax-efficient.

Let's start with how we help with one aspect of estate planning – charitable giving, today and after you pass.

Tax time is upon us. You've turned in all your donation receipts. They were easy to keep track of, right? Wait. It was a mess? Are you sure you found them all? What if I told you that there was a simpler way to make donations to the organizations you currently support AND keep track of it all? A way to eliminate the need to file and then find the receipts.

Open a Charitable Giving Account.

With a Charitable Giving account, you add either cash or investment holdings. You can deduct the full amount added to the account, up to the maximum amount allowed by the law, the year you donate to the account. Then, over time, you make donations, called grant recommendations, to the organizations you currently support with a few clicks of the mouse (or a call or email to your investment advisor). You can send a little as $50 at a time and even schedule reoccurring donations (monthly, quarterly, or on an annual basis). Then when you need information for your tax filing, simply print out the report. The amount added to the account is what you use for filing your taxes. The report will also show where you sent your donations - IN ONE PLACE. No loose donation receipts to have to track down!

The benefits of a Charitable Giving Account:

·       Support the same charities you do now,

·       Get just one tax receipt,

·       Donate cash, stocks, and mutual fund holdings.

Your charitable legacy can continue beyond your lifetime. A charitable giving account can be passed to a successor – you select an Individual Successor(s), Charities, or an Endowed Giving Program to be a successor account owner to continue the legacy of your giving account after your passing.

If you are interested in learning more about how it works or how you can donate appreciated long-term assets to avoid paying capital gains, then give our office a call.

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