Making the most of your year-end charitable giving.
DAFs and “Bundling”
A GiveWell Community Foundation (GWCF) charitable fund is a great way to claim a tax deduction now and support your favorite nonprofits and charitable causes in the future. With a donor-advised fund (DAF), donors can make their year-end contribution now and then take their time deciding where and when their contributions will go in the future. In the meantime, their contribution can be invested, allowing them to give back even more over time. A charitable fund can also allow some donors to reach the itemizing threshold by “bundling” or pre-funding years of charitable giving in advance.
Establishing a charitable fund is quick and easy to set up with a gift of $10,000 or more. Gifts can also be made with non-cash assets such as appreciated stock or mutual funds, which avoids capital gains tax on the sale of the stock.
Qualified Charitable Distributions
If you are 70 ½ or older, you can reduce your taxable income by making a Qualified Charitable Distribution (QCD) from your traditional IRA to a qualifying fund at GWCF. While donor-advised funds are excluded, designated funds (to a specific nonprofit), field of interest funds (for an area of interest), or funds established by nonprofit organizations may all be used. The fund can be one already established at GWCF or you can create your own fund that can also be used for future donations. In 2024, the maximum amount of QCDs for individuals is $105,000.
Required Minimum Distributions
Donors who are 73 and older must take Required Minimum Distributions (RMDs) from their traditional IRAs. You may direct your RMD to qualifying funds at GWCF such as designated funds (to a specific nonprofit), field of interest funds (for an area of interest), or funds established by nonprofit organizations. The fund can be one already established at GWCF or you can create your own fund that can also be used for future donations.
Professional Advice
Before making any significant gift to charity, we suggest you consult with your CPA, attorney, or other professional advisor to understand the impact on your taxes and estate. In addition, our professional staff would be happy to work with you and your advisor to help maximize the impact of your year-end giving.
Year-End Giving Deadlines
- Gifts/checks sent to GiveWell Community Foundation must be postmarked no later than December 31.
- Credit card gifts can be made online at givecf.org/donate and must be made before midnight on December 31.
- Gifts of publicly- or privately-traded stock and other non-cash assets can be more complex, so be sure to get in touch with us soon to discuss. Note: if you are giving appreciated stock, please let us know in advance the name of the donor, the name of the security, the anticipated number of shares, and the name of the fund to receive the gift.
GWCF Holiday Schedule
Our offices will be closed on:
- Tuesday, December 24, 2024
- Wednesday, December 25, 2024
- Monday, January 1, 2025
We will be available all other weekdays to serve you during our regular business hours of 9:00 a.m. – 5:00 p.m. If you have any questions or would like to set up an appointment, please call us at 863-683-3131.
This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.
