Year End Tax- and Charitable Giving – Have a Plan

Have you ever wanted to leave a mark and recognize a school, church, or organization that has helped you excel or given you an opportunity when you needed one? Have you ever wanted to “pay it forward” and extend a kindness to someone because someone did so for you?

If the answer to one or both of these questions is yes, then think about putting your dreams into action as 2020 draws to a close. How? By taking a look at your charitable giving practices and devising a plan. Some ideas to consider:

Open a Donor Advised Fund (DAF): These are simple, tax efficient investment accounts designated for charitable giving. With a DAF, which resembles your own charitable giving checking account, you can donate to one or several nonprofit organizations and use it to build a meaningful legacy that can last forever.

Appreciated securities: With the run up in the stock market over the last few years, your portfolio may have one or more securities that have increased significantly in value. Depending on your circumstances, it may make sense for you to use the appreciated security to fund your DAF or gift it to a nonprofit of your choice. Doing so may help you avoid costly capital gains taxes and, if you itemize, you may be able to take a deduction on this year’s taxes. Even better – the knowledge that all of the proceeds from the asset will be directed to your charitable giving plan. Before proceeding, be sure to discuss this strategy with your financial advisor and your tax preparer.

Contribute to or establish a scholarship fund: Rising tuition costs and other types of financial aid stagnant or declining means many college-age young people struggling to pull together the funds they need to secure their college education. Start a renewable scholarship of your own, or you can contribute as little as to a scholarship already in place like the  St. Louis Community Foundation’s Investing for the Future scholarship – to which no contribution is too small.

If you choose to explore these options – or discover what others might be available — the charitable giving strategists at the St. Louis Community Foundation can help. They will work with you to develop your giving plan and then apply their St. Louis and nonprofit knowledge to put the plan in action.

Leave that mark! Get started today! Contact a St. Louis Community Foundation Giving Strategist today at givingstrategies@stlgives.org.