Charitable giving isn’t just about generosity—it’s also a powerful financial strategy. Whatever your passion, there are several ways to support the causes you care about while optimizing your tax situation. Here’s a breakdown of the most effective charitable giving methods and how they can benefit you.
Cash or Check Donation
This is the most straightforward way to give. Contributions to public charities are:
- Deductible up to 60% of your Adjusted Gross Income (AGI)
- Excess contributions can be carried forward for up to five years
Donating Property
(Real Estate, Vehicles, etc.)
Gifting property can be a smart move, especially if it has appreciated in value:
- Deductible up to 30% of AGI
- Requires a qualified appraisal for gifts over $5,000
- Deduction is based on the Fair Market Value at the time of the gift
- Refer to IRS Publication 526 for full details
IRA Beneficiary Designation
Leave a legacy by naming a charity as the beneficiary of your IRA. This is a simple way to make a meaningful impact without affecting your current finances.
Qualified Charitable Distribution (QCD)
If you’re 70½ or older, you can make tax-free distributions from your IRA directly to a charity:
- Counts toward your Required Minimum Distribution (RMD)
- Ideal for those who use the standard deduction or don’t have appreciated assets
Donor-Advised Fund (DAF)
DAFs offer flexibility and tax advantages:
- Contributions are deductible in the year they’re made
- You can donate appreciated securities to avoid capital gains
- Utilize charitable bunching, which means you itemize in high-giving years, take the standard deduction in others
Gifting Appreciated Securities
Donating long-term appreciated stocks is a win-win:
- Avoid capital gains tax
- Receive a deduction for the full market value
Scholarship Granting Organizations (SGO)
– Indiana Only
Support education while earning a tax break:
- Donate to SGOs for private school scholarships
- Indiana residents receive a 50% state tax credit
- Subject to annual program limits. Learn details from the Indiana Department of Education.
Why Strategic Giving Matters
Strategic charitable giving allows you to:
- Support more causes
- Plan for long-term impact
- Reduce your tax burden
Before making any charitable contributions, consult with a SYM financial advisor to ensure your giving aligns with your overall financial goals.
Contact SYM Financial Advisors: 800-888-7968 | sym.com
Disclosure: This material is not financial advice, an offer to sell, or a solicitation of an offer to purchase any security managed by SYM Financial Corporation (“SYM”). The opinions and assumptions expressed herein are those of SYM Financial Corporation (“SYM”) and are subject to change without notice. SYM is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about SYM including our investment strategies, fees, and objectives can be found in our ADV Part 2, or Form CRS, which is available upon request.
