It’s that time of year: Three reminders for client’s charitable giving.

December 31 is fast approaching, and that means income tax deadlines are beginning to loom large.  As you work with your clients this month, try to get ahead of the December rush by keeping important charitable giving tax tips top of mind. 

Certainly, giving to charities creates tax advantages for your clients, and you’re no doubt helping them navigate year-end tax planning as 2023 winds down.  It’s also important to check in with your clients about the impact they hope to achieve with their giving, while you also strive to understand why they care about the causes they support. The Hudson Community Foundation (HCF) team can assist you in these conversations, either behind the scenes or as a collaborator where appropriate.  We are committed to serving as your partner on all things charitable giving, and our goal is to play a supporting role so that your client relationships are strong and enduring.

Here are three examples of how HCF can help:

“Bunching” is a technique that allows your clients to secure an income tax deduction this year while also planning ahead for future years’ anticipated support for favorite charitable organizations. By maximizing gifts this year to a donor-advised fund at HCF,  your client will be well-positioned to help community organizations not just this year, but in future years. 

Giving appreciated stock (yes, appreciated stock still exists even in a volatile market) to a fund at HCF or other public charity is always a tax-savvy technique and one that allows for both income tax deductibility and avoidance of capital gains taxes. The net-net of giving appreciated stock is that your clients can maximize financial support for local nonprofits. 

Qualified Charitable Distributions (QCDs) of up to $100,000 per person from an IRA by a client age 70 ½ or older can count toward Required Minimum Distributions, thereby reducing the income tax load. HCF can help establish a designated fund, scholarship ship or field-of-interest fund to receive your clients’ QCDs and provide critical support for organizations that are facing increasing demands for services during the holidays and winter months.  

Reach out to Hudson Community Foundation for assistance or to discover ideas on anything related to charitable giving.  We are here to help you serve your philanthropic clients and support the success and longevity of your client relationships.

We welcome conversations to help donors give to their favorite causes. Hudson Community Foundation enables simple, smart and meaningful family philanthropy.  Although HCF is itself a public charity, it does not promote any one charitable cause.  Rather, HCF is committed to expanding the capacity of family philanthropy - no matter where you live.

 Read more about Donors Guide to Donor Advised Funds.

With a fund at Hudson Community Foundation (HCF), advisors can manage the charitable assets on their preferred platform at any amount. Assets stay under your management. You can provide your clients with the consistent investment advice they expect. We are your partner in charitable giving!

The team at HCF is a resource as you serve your philanthropic clients. We understand the charitable side and are happy to serve as a secondary source as you manage the primary relationship with your clients. This blog is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.