Consider these strategies in your charitable giving plans.
- Donor Advised Fund (DAF). You can make a gift through your DAF. Now regarded as the fastest-growing charitable giving vehicle in the United States, a Donor Advised Fund is like a charitable investment account, used for the sole purpose of supporting charitable organizations you care about. When you contribute cash, stocks, or non-publicly traded assets such as real estate, private business interests and private company stock to a Donor Advised Fund, you are usually eligible to take an immediate tax deduction for the full value of the asset. Once in the Fund, those assets can be sold tax free and reinvested into other investment options that continue to grow tax free until you direct grants to any IRS-qualified public charity.
- Use Your IRA Required Distributions. If age 70½ or better consider Qualified Charitable Distributions. These count toward your required minimum distribution for the year. If you have to take RMDs but you don't really want or need the money, QCDs can be a good way to help the Foundation, satisfy the required minimum distribution amount and avoid a potential 50% excise tax penalty. You'll also avoid paying income tax on the distributions.