Give Wisely to Maximize Your Charitable Impact

Give Wisely to Maximize Your Charitable Impact


Two new studies conducted at the University of Chicago and Northwestern University found that giving to others makes us happier than giving to ourselves. To help you share this joy, here are some ideas for end-of-the-year giving, although there’s no need to wait. Generosity doesn’t have a deadline.

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Qualified charitable distribution

Traditional IRA owners over age 70 1/2 can donate required minimum distributions directly to qualified charitable organizations. The money is excluded from adjusted gross income, potentially reducing taxes.

Donate appreciated securities

Receive an immediate tax deduction and avoid capital gains tax on the appreciated portion of their value. Gifts also have the potential to reduce estate taxes.

Use life insurance

  • Give existing property to your organization of choice and then use any tax savings to fund a life insurance policy with that same organization as beneficiary.

Donor advised funds (DAFs)

Create a de facto family foundation with no legal expenses or administrative and tax reporting requirements. Establish one with as little as $10,000 in cash, marketable securities or mutual fund shares. Make subsequent contributions in amounts of $500 or more. Deduct contributions immediately, and make distributions when you’re ready. The account can be invested and grow tax-free for as long as you want.

Special 529 plan provision


Here’s how it works:

Bunching 529 contributions


Another option


Charitable gift annuity

Donate cash or assets and, in return, the charity pays a fixed annual sum to designated recipients or you. Any remainder reverts to the charity.

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