As the year draws to a close, individuals are considering their charitable contributions and tax planning for the upcoming year. There are several options available that allow donors to receive tax benefits from their charitable giving.

One option is gifts-in-kind. Traditionally, cash donations are a straightforward way to support charities. For those who itemize deductions, they may deduct cash gifts up to 60% of their contribution base, which is typically their adjusted gross income (AGI). For instance, a couple with an income of $100,000 can donate and deduct up to $60,000 in a year. If someone wishes to give more than 60% of their AGI, they may carry forward and deduct the excess amount over the next five years.

From a tax perspective, donating appreciated assets such as stocks or real estate is beneficial. This approach allows donors to avoid capital gains taxes while still receiving a tax-saving charitable deduction.

Another option is an IRA rollover. Individuals aged 70.5 or older can transfer funds from an IRA up to $105,000 directly to a charity without incurring taxes. This transfer can satisfy minimum distribution requirements and reduce taxable income.

For those unable to make immediate cash donations but wish to contribute in the future, bequest intentions provide another avenue. Individuals might consider making future gifts through bequests in wills or trusts or by naming organizations like NARF as beneficiaries in insurance policies.

To explore these options further, individuals are encouraged to visit: https://plannedgiving.narf.org.

For additional information on end-of-year planning strategies, interested parties can contact plannedgiving@narf.org for guidance tailored to meet specific needs and goals.