Here we are, on the cusp of finishing out the 2023 year and what a year it’s been! Gladly, so many of us have figured out what to buy family and friends for holiday gift giving so now, we can put our minds to work on making other people’s lives filled with joy, merriment, and surprises during the year-end festivities. On this topic, I extend a few thoughts for wrapping up year-end donations, not only from the heart, but also for the taxman.
If you are over that 70+ year-old threshold and you haven’t taken your Required Minimum Distribution (RMD) from retirement funds, now is the time to consider turning those RMDs into charitable gifts to keep them from inflating your gross income. If you don’t have household plans for those RMDs, it is often a wonderful tax advantage to transfer the amount(s) into a community foundation or towards benefiting a charitable organization. For most nonprofit organizations, year-end giving represents one of the most important aspects of their annual monies raised each year and helps define for them the actual amount of money that can be spent the following year delivering their vital programs and services. Being generous all year long is truly wonderful, but the largest gift giving happens at year-end starting right after the Thanksgiving holiday. If you have plans to give, giving now makes an important difference.
When making year-end gifts, it’s always wise to check Charity Navigator or GuideStar to make sure the organization you are choosing is in good standing with these two organizations. If they have earned seals of transparency and effectiveness at using donations, you’ll immediately know it. For many individuals who are familiar with certain organizations such as those with ringing bells and buckets by a store’s front door, we know many that are reputable and credible without having to check a website. But you need to be very wary of people calling you on the phone you don’t know or responding to text messages asking for money. Always ask callers for donation paperwork to be mailed to you for review. If you have a concern or question, Legacy Endowment Community Foundation is a community resource ready to help research charities or special causes to ensure legitimacy and good standing. We stand ready to help.
As the count-down to holiday festivities begins, it is hoped you feel prepared and ready to enjoy all that the season has to offer without any of the brutal snowfall, deep freezes, and white-tailed deer munching on our front lawns. What we do have in our beautiful region are crisp winter days and the warmth of community closeness (with just enough morning frosts to pull out the warm jackets) without needing snow shovels or tire chains. What a blessing! On behalf of all of us at Legacy Endowment, we stand ready to help with any of your philanthropic questions and wish to extend to you and yours our best wishes for the happiest of holidays.
This is a reprint of Jean Larsen’s article in the Village News on December 13, 2023.
This is part of a series of articles written to share important information about charitable giving and the various ways you can easily support your favorite charities and community.