Keep These Tips In Mind As You or Your Client Plan For Year-End Giving

Amy Jordan |

Stock gifts are still effective

Even with the market's late November rally, 2022’s rough stock market may still be a concern for some of your charitable clients. Remember, though, that it is unlikely that all of a client's holdings have had an unusually down year. Making gifts of appreciated stock to a donor-advised fund or other type of fund at the Hudson Community Foundation (HCF) is still one of the most tax-savvy ways for clients to support favorite charitable causes because capital gains tax can be avoided on the appreciated stock. 


If a client is over 70 ½, consider a Qualified Charitable Distribution


A Qualified Charitable Distribution (“QCD”) is a very smart way for a client to support charitable causes. If your client is over the age of 70 ½, the client can direct up to $100,000 from an IRA to certain charities, including a designated, field-of-interest, unrestricted, or scholarship fund at HCF. If a client is over the age of 72, QCDs count toward the Required Minimum Distribution (RMD) for the year. That means the client avoids income tax on the distributed funds. Our team can work with you to evaluate whether the QCD is a good fit for a particular client.


Clients can use donor-advised funds to do as much good as possible


The team at Hudson Community Foundation can help a client maximize an already-established donor-advised fund, or set up a donor-advised fund if the client is not yet a fundholder. Please reach out to HCF to learn more about how “bunching” at year end can maximize a client's tax benefits through a donor-advised fund, and at the same time ensure that nonprofits are supported as continue to grow in these economic times. Grantmaking from donor-advised funds continues to rise, especially as donors catch on to the ways a donor-advised fund can help with tax planning and, importantly, keep their giving levels consistent even in lower-income years. 


Watch the calendar

An important note: Please reach out to our team to find out when certain transactions must occur to be completed during this tax year, including clients' checks to funds at HCF which must be postmarked or hand-delivered no later than December 30. Gifts of marketable securities also need to be fully transferred by December 30, so please contact us in plenty of time for our team to process and receive your clients' transfers. 


Visit our website for Donation Resource Guide and our Tax Saving Tips for you and your clients


This content is developed from sources believed to be providing accurate information. The team at HCF is a resource for philanthropic clients and donors. This blog is provided for informational purposes only and is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel.