Have You Considered Your Charitable Giving Strategies?

Tips for Charitable Giving

In our industry, we regularly encounter individuals that are unaware of the financial implications that the new tax law has on their charitable giving. If you are charitably inclined, we welcome you to call our office (302.234.5655) to speak with an advisor and learn how we can best support your charitable giving strategies.

If you or someone you know is age 70 ½ or older with tax deferred retirement assets and subject to required minimum distributions (RMD), you/they may want to consider the following strategy:

Qualified Charitable Distributions (QCD)

Give charitably through your IRA and reduce your Adjusted Gross Income (AGI).
Your AGI is what determines Medicare Part B premiums.
This gift does not count as taxable income to you.
This gift does counts towards your annual Required Minimum Distribution.

If you are not age 70 ½, there are other strategies to consider when giving charitably in light of the new tax law, including:

Bunching

Multiple years of giving in a single year so that you exceed the standard tax deduction and receive a tax benefit.

Donor Advised Funds

Single year tax benefits with the ability to spread distributions to target charities over multiple years with simplified tax reporting.

Donate Appreciated Securities

Donate the appreciated asset to your donor advised fund and receive tax deduction for full value of the asset.

Planned Giving

Change the beneficiary on your IRA, retirement account or life insurance to charities of your choice.

In addition the strategies mentioned above, there are other advanced level charitable giving strategies to consider such as Charitable Lead Trusts and Charitable Remainder Trusts.

While we recognize we have just touched the surface of these topics, if you are interested in learning more about how we can serve your charitable giving and other financial planning needs, please contact us at 302.234.5655 or contactus@covenantwealthstrategies.com to learn more.

As our clients' most trusted advisor, the team at Covenant Wealth Strategies is a catalyst; striving to build financial security, see dreams fulfilled, and create enduring legacies.

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