Maximizing Your Impact on GivingTuesday
We are just two weeks away from Thanksgiving and then it is GivingTuesday. 'Tis the season to give, collaborate, and celebrate generosity.
If you plan on donating money to charity, here are a couple of tips to increase the impact of your money.
Donate Highly Appreciated Stock
When you donate highly appreciated stock to a qualified charity, you can avoid paying capital gains taxes on the appreciation. This can save you a significant amount of money, especially if you have a high tax rate.
Because you're not paying capital gains taxes on the donation, you can give more to the charity of your choice. For example, if you have $10,000 worth of stock that has appreciated to $20,000, and you donate it to charity, you can avoid paying $2,000 in capital gains taxes. This means that you can give the full $20,000 to the charity, without losing any money to taxes.
Qualified Charitable Distributions
If you need to make a required minimum distribution (RMD) from your IRA account, making donations as a Qualified Charitable Distribution can be a smart choice.
Pros of QCDs:
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Limitations of QCDs:
We hope these tips help maximize your impact this GivingTuesday and you have a wonderful Thanksgiving!
Do you plan ahead for GivingTuesday or do you give spontaneously?
Chris Wang , Director of Research at Runnymede Capital Management, Inc.
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