By Travis Anderson, Managing Member at TBH Advisors
Philanthropy is a personal choice and reflection of your values and goals. As we begin December, it’s a critical time to consider charitable contributions. In fact, 30% of all annual giving happens this month. At TBH Advisors, we view the end of the year as a great opportunity for individuals to align their financial planning with their philanthropic aspirations. Here are three reasons to consider charitable giving as the year draws to a close.
At TBH Advisors, our role is to ensure that your philanthropic goals are thoughtfully woven into your financial planning. With that said, charitable giving is not a one-size-fits-all endeavor. Each individual has unique giving preferences—some choose to donate annually, while others target specific causes or projects. Whether it’s supporting an organization that works to eliminate homelessness, an animal welfare cause, or funding a long-term project such as building a new school, your contributions can make a significant difference.
Before making a donation, it’s important to vet and confirm it’s a reputable and legitimate 503(c) organization. You can reference websites like GuideStar or the IRS website to confirm a charity can receive tax-deductible contributions.
The tax benefits of charitable giving are particularly impactful at year-end. It’s not the only reason to give, but if you’re charitably inclined you can reap tax benefits. And moving beyond traditional cash gifts can amplify the impact of your contributions. Donating highly-appreciated assets like stocks can increase the value of the gift while avoiding capital gains taxes. Here are a few tax-efficient vehicles to consider:
At TBH Advisors, we are adept at navigating legislative changes and can help proactively tailor your charitable giving strategy to optimize both your philanthropic impact and tax efficiency in anticipation of changes in tax laws, such as capital gains tax adjustments.
Philanthropy can be an integral part of your legacy, reflecting your life’s values and commitments. We work closely with clients to ensure their charitable giving aligns with their broader estate planning goals. This can be done by implementing some of the tax-efficient strategies previously mentioned, such as a trust. In order to ensure your desires are met beyond your living years, you can include your specific philanthropic goals in your will.
Charitable giving at the end of the year can make a positive impact in a way that aligns with your financial goals and personal values. Whether it’s leveraging tax-efficient strategies or crafting a lasting legacy, TBH Advisors is here to guide you every step of the way.
Are you looking to integrate your philanthropic goals into a tailored financial plan? Contact TBH Advisors to discuss how we can help optimize your end-of-year giving in a way that resonates with your personal and financial aspirations.
At TBH, your financial goals are our top priority. Contact us to schedule a free consultation and see how we can help you achieve them.