Get into the Spirit: Plan Now for Your End-of-Year Charitable Giving
The holiday season is a time of joy, reflection, and connection with loved ones. It's also a moment to consider the state of our world and what we hope to achieve in the coming year. For many that is good health!
If the spirit of goodwill motivates you to give to support a Silver Cross program or service near and dear to your heart, planning ahead can help you meet your tax goals, especially if you're aiming to take a charitable (itemized) deduction rather than the standard tax deduction.
Here are three easy ways to make your end-of-year giving count:
- Donate Appreciated Stock
- Benefit: By donating appreciated, publicly traded stock, you can claim a charitable deduction for its fair market value and avoid paying capital gains tax on the appreciation.
- Timing: To qualify for a 2025 deduction, brokers recommend initiating transfers by mid-December, as processing can take several weeks.
- Use a Donor-Advised Fund (DAF)
- Benefit: A DAF is an investment account for charitable giving. You can contribute to the fund by December 31, 2025, to get an immediate tax deduction and recommend grants to charities later.
- Flexibility: A DAF can also be used to bunch contributions, allowing you to make a larger impact in a single year.
- Make a Qualified Charitable Distribution (QCD)
- Benefit: If you are age 70½ or older, you can transfer up to $108,000 directly from your IRA to the Silver Cross Foundation and other qualified charities. This distribution is excluded from your taxable income and can be used to satisfy your 2025 Required Minimum Distribution (RMD).
- Note: This does not apply to DAFs.
Important Deadlines for End-of-Year 2025 Giving
- December 15: Submit grant recommendations from a DAF for the best chance of having the funds reach the Silver Cross Foundation by year-end.
- December 20-23: Initiate transfers of appreciated stocks and mutual funds, as they have longer processing times.
- December 31:
- Online and Credit Card Gifts: Must be completed by 11:59 p.m. in your time zone.
- Checks: Must be made out to the Silver Cross Foundation and postmarked by the U.S. Postal Service on or before December 31.
- Wire Transfers and QCDs: Must be received and cleared by December 31.
By planning ahead, you can ensure your charitable contributions are maximized and processed in time for the year-end. You may also want to consult with your financial advisor or accountant when making decisions that affect your annual tax filings. For additional information in making a gift to the Silver Cross Foundation, contact us by email or call (815) 300-7105.
