As the year end approaches, many of us give consideration to charitable giving. Considering the post-election rally in the equity markets as well as the potential for tax reform in 2017, now could be time to maximize those contribution dollars.
A strategy we believe may make sense is to contribute several years of charitable contributions to a donor-advised fund before the year is over. A donor-advised fund allows you to make a charitable contribution and receive an immediate tax benefit while retaining the ability to give the money away over time. With the potential for limits on deductions as well as lower tax rates in the future, the value of the deduction could be worth more today than in future years. Better yet, since many stocks have had a nice gain of late, you can contribute highly appreciated stock and not have to worry about the capital gain.
Community foundations can provide this service as well as donor-advised funds through several of the large investment managers such as Schwab, Fidelity and Vanguard.
With just a few weeks left in 2016, now is the time to act. We are ready to help; please contact us to discuss this further.