WE Plan

End of Year Planning Charitable Giving

December 6, 2017

Dear clients and friends,

As the year ends, it’s important to plan for taxes.  This is especially true in a year where we might see significant changes to the tax code.  While we try not to inundate your mailbox, we’ve received many calls on charitable giving and thought we would send you a quick note. 

Here are a few things we do for you:

  • We harvest losses within your taxable accounts throughout the year rather than waiting till year-end. Consider doing the same with taxable accounts not held with us.
  • We automate Required Minimum Distributions (RMDs) to help you avoid 50% tax penalties.
  • We work with your accountant to review your tax planning and charitable giving
  • We review your Financial Plan to accelerate deductions or defer income, paying close attention to your tax bracket. 

This year we wanted to take a minute and revisit Donor Advised Funds with you. 

Most of our clients make charitable donations each year.  Charitable giving is important to many of you because helping a worthy cause can make a meaningful impact on society AND reduce your taxable income.  

Each year we meet with clients that fail to make donations in time to take the deduction.  Usually it’s because they can’t decide what cause to support or they want to support many but don’t find the time to choose.  Others aren’t sure how to maximize their giving and how to structure it. 

We find Donor Advised Funds to be a great strategy for clients.  A donor advised fund works much the same way a private foundation does, allowing you to donate to your favorite charities/causes and receive immediate tax benefits.  It is easy to set up, and there are very little administrative costs and maintenance associated with it. 

Imagine an account where you send all your charitable donations. While the donations sit in the account they are invested and potentially growing. You can get the deduction immediately without having to decide what charity to give it to.  Then at your leisure you can send donations to different charities in the future.  You can even get creative with how you title the fund - The Jefferson Family Charitable Fund.  

You can fund it with Cash or Appreciated Stock for example.  But beware the deadlines. 

Please call or email me at your convenience to discuss Donor Advised Funds or any other aspect of your financial plan. For more information please find the enclosed information sheet on establishing a donor advised fund interesting.

Happy Giving!

Contributions to a DAF are irrevocable. Raymond James does not provide legal or tax advice. Taxpayers should seek advice based from an independent legal or tax professional prior to opening an account.

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