The approach of year-end often brings questions about tax-advantageous ways to increase charitable giving. Here we present three ways to reduce your tax burden and increase your philanthropic impact. Don't hesitate to reach out to Traci by email or phone 970-439-4448 if you would like to discuss these or other ways to give.
1. Open a Donor Advised Fund
Contributions to a Donor Advised Fund (DAF) are tax-deductible for the full amount of the donation at the time the donation is made, offsetting a potential tax burden, and can be invested for long-term tax-free growth over time. Grants can be made to charities of your choice in the United States over time, and it's easy to request grants through our online portal or by email. YVCF provides guidance throughout the year to help you learn about local needs which align with your charitable interests.
2. Make a Qualified Charitable Distribution (QCD) from an IRA
If you are 70 1/2 or older, you can make a gift, known as a QCD, of up to $100,000 per year from your IRA account to YVCF for the causes you care about. By making the gift directly from your IRA to YVCF, you can avoid paying taxes on that money. If you are 72 or older in the year of the distribution, your gift qualifies towards your required minimum distribution. If you are married, your partner can also make a QCD of up to $100,000 from their IRA, for a total of $200,000.
You can contribute to YVCF's General Operating Fund or any other designated, agency, or field of interest fund at YVCF; or we can help you set up a designated fund for specific charities or purposes. QCDs may not be donated to a DAF.
3. Donate appreciated stock
A gift of long-term appreciated stock is one of the most tax-advantageous ways to increase your charitable giving. Instead of selling stock and donating the cash, capital gains taxes can be avoided by donating the stock directly to your DAF or your favorite charity. Transacting stock donations is a service YVCF provides to local nonprofits.
2023 Year-End Giving Deadlines
- The last day for 2023 grant recommendations from your DAF held at YVCF is Friday, December 22.
- New DAFs can be established by 12 noon Friday, December 29.
- Wire transactions and EFTs must be initiated no later than Friday, December 22.
- Checks mailed to YVCF must be postmarked no later than Sunday, December 31.
- Checks dropped off at the YVCF office must be received by a staff member by 12 noon Friday, December 29.
- Credit card gifts must be made before 12 midnight Saturday, December 31.
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