Make the most of your year-end giving

    The season of giving is upon us. Along with the parties and holiday cheer comes an opportunity to reflect on what we have and where we can give back. The end of the calendar year also marks the deadline for charitable giving for those who wish to receive a 2018 tax deduction. Here are five tips to help make the most of your year-end giving.
    1. Evaluate your giftable assets. Some assets are better to donate than others. Donating appreciated stocks or property can help you avoid capital gains taxes. Gifts of cash are now deductible up to 60 percent (up from 50 percent) of adjusted gross income, and any unused deductions may be carried forward for up to five years. Individuals age 70 1/2 and older may use the IRA rollover provision to gift their required minimum distribution directly to charity in the form of a “nontaxable event.” Gifts of life insurance, water rights, real estate and other noncash assets offer unique opportunities for charitable giving.
    2. Contemplate the impact of new tax laws. The new tax law has increased the standard deduction to $12,000 for individuals and $24,000 for married couples, which may impact your decisions regarding charitable giving from one year to the next. One strategic option for maximizing your tax liability is to “bunch” your giving: Take the amount you would typically give to your favorite charities over two or more years and make one gift now to create a donor advised fund. Future “bunching” can grow your donor advised fund, making giving easy, effective and enjoyable.
    3. Talk to your adviser. Contact your financial adviser, CPA or attorney to talk about the most strategic ways to use charitable giving to offset your tax liability this year and in the future. The donor advised fund option mentioned above will provide a tax deduction this year — especially helpful when “bunching” your giving — and allow you to distribute grants from your charitable fund to your favorite charities at any time for years to come.

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