Giving Season: New Strategies, New Benefits

As summer fades, many of us think about the goals we set earlier in the year, the coming giving season or end-of-year tax and financial-planning strategies.

Whether charitable giving is part of your holiday giving plans or a way to maximize your philanthropic donations with efficient tax-planning strategy, there’s no better time to review your plans with your financial planning professional.

“It’s really important when we are speaking with clients that we are having fulsome conversations that can tease our individuals’ goals for charitable giving,” says Tyler MacLean, a Financial Planner with Beem Credit Union and Aviso Wealth, and Board Director at Langley Community Health & Hospital Foundation.

“Any time you are reviewing your investments with your advisor, you should be highlighting what’s important for you, and that includes philanthropy.”

One benefit of working with your financial planner is finding the most efficient way to give to the causes that matter most to you. Sometimes that’s smaller, regular donations through the year; other times it’s finding creative solutions like gifts of securities.

Thinking beyond cash: Consider donating stocks
How does it work?

If a donor was already planning to make a year-end gift to charity using cash, sometimes transferring appreciated investments, like stocks, ETFs or mutual funds, can bring greater tax savings, presenting the opportunity to give more.

For example, if an investment has increased in value, you’ll need to pay capital gains taxes when selling it. Sometimes transferring those stocks to a charity like Langley Community Health & Hospital Foundation can bring greater tax savings than by donation cash, eliminating the capital gains and leaving no taxes owing.

Another benefit of charitable donations - and planning ahead - is that you can claim your donation in the current tax year, or carry it forward for up to five years, MacLean notes.

That can be important if you know you’ll have a high-tax year coming up, maybe due to the sale of a summer residence or business, for example. Carrying forward this year’s donation credit can help offset those taxes down the road.

As we approach the end of the year, now is the ideal time to make changes that can benefit you, your loved ones and the charities you care about.

Learn more at LCHHFoundation.com/gift-of-securities