For those making SIGNIFICANT charitable contributions, especially those who are managing the execution and tracking of each and every donation, the operational load and complexity of the tax and compliance rules can feel like a serious burden.
Burden implies work. And work leads to procrastination, resulting in a “December Mad Scramble” – with a third of U.S. giving (almost $500 billion) happening in the last month of the year, with December 31st as the most popular giving day, historically.
For most donors, there are many grantees (those receiving grants) and commitments which are similar year-to-year and could be done earlier! Completing giving earlier not only removes stress from a busy time at year-end, but also reduces errors and “missed gifts.” The moral of the story: giving throughout the year can result in a financial benefit by potentially lowering estimated tax payments or allowing bigger deductions when assets might be at a higher mark.
So, what’s the best way to change this dynamic at year-end?
Look back at your last three years of charitable activity, which often reveals patterns of giving that can accelerate decision-making on obvious grants. Setting a “giving plan” early spreads out the administrative work...and is handy when meeting with financial and accounting advisors to optimize wealth and tax planning. So, just work smarter, darn it! Learn about Paul Lussow, an expert in working smarter, directly below:
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