10 Tips for Making the Most of Your
Year-End Giving
Now is a great time to plan for your year-end giving and The Community Foundation of the Dan River Region is ready to help you! When you make a donation by December 31 to The Community Foundation, you aren’t just giving money—you’re making a difference in our region.
- Talk to your advisor: Before making any significant gift to charity, consult with your CPA, attorney or other advisor to understand the impact on your taxes and estate.
- Consider your income: Take time to understand your tax liability for the year. Did your unearned income increase? Did you sell any appreciated assets? The answers to these questions may determine how much you want to give by December 31.
- Review your stocks: If you'd like to make a year-end charitable gift, consider giving appreciated stock. Selling stock will incur capital gains on the appreciation, but if you gift stock, you will receive a charitable deduction for the current market value of the stock, just as you would with a cash gift. Such gifts are deductible up to 30% of your adjusted gross income and you can carry the deduction forward for up to an additional five years.
- Give early and complete your gift by December 31: A gift by check is complete when mailed (postmarked) to the charitable recipient, even if not cashed until the following year. Gifts of stock and real estate are more complex; don't wait until late December to make these gifts, as it may be too late to make the necessary arrangements.
- Give online: Save your stamps for sending holiday greetings. Giving online through www.cfdrr.org speeds up the process and ensures your gifts can get to work right away.
- Know the organizations you support: While there are many worthy causes, only donations to qualified 501(c)(3) organizations are tax-deductible. If you give through The Community Foundation, we will document the status of all nonprofits prior to making a gift on your behalf and can help you identify organizations that are qualified to receive your gift.
- Give from your IRA: If you are 70 1/2 or older, an IRA rollover gift is a smart way to donate. You may avoid taxes on transfers up to $100,000 to us; satisfy your required minimum distribution (RMD) for the year; reduce your taxable income; and make a gift not subject to the 50% deduction limits on charitable gifts. Please note that the distribution must be sent directly to us from your IRA administrator, not first withdrawn by you. Also, IRA distributions cannot be added to donor-advised funds but can be donated to all other types of funds offered by The Community Foundation.
- Give now- decide later: If you are planning for a charitable tax dedcution this year but are undecided about which nonprofits to support, consider opening a donor advised fund at The Community Foundation. You can claim a deduction for contributions to your fund now, even though distributions from the fund might be made in future years. A donor-advised fund can be set up in one meeting.
- Create a giving plan: The Community Foundation can help you create a giving plan to help you think strategically about how you give and to what organizations. This ensures that your donations make the greatest impact on the causes you care about while maximizing tax advantages.
- Let the Community Foundation do the legwork: Working with a philanthropic advisor at The Community Foundation gives you access to our extensive knowledge of the local nonprofit community and the broad charitable needs of our region. Let us help you stay informed about the organizations you support and the effect your giving will have on the future of our community.
For more information on year end giving, contact The Community Foundation of the Dan River Region, 541 Loyal Street, Danville, VA 24541 or call 434-793-0884 or visit www.cfdrr.org.
