Maximizing Your Charitable Impact: A Year-End Gifting Guide

At GPS Wealth Management, we believe that financial planning isn’t just about building personal wealth; it’s also about making a positive impact on the world around us. As the year ends, many of our clients consider making charitable gifts to support the causes they hold dear. To help you maximize the impact of your generosity, we’ve put together this guide to navigating the financial aspects of charitable giving.

Choosing a Worthy Cause

The first step in making a meaningful charitable gift is selecting a qualified 501(c)(3) nonprofit organization that aligns with your values. Websites like Charity Navigator, Charity Watch, and Give Well* offer valuable insights into a charity’s financial health, transparency, and effectiveness. Don’t hesitate to reach out to the organization directly to learn more about how they plan to use your gift. Amplifying Your Impact Through Employer Matching Many employers offer programs that match their employees’ charitable contributions, effectively doubling the impact of your gift. If you’re still working, it’s worth checking with your HR department to see if such a program is available. At GPS Wealth Management, we’re happy to help you navigate the process of maximizing your contributions through employer matching.

Making Charitable Giving Tax-Smart

When it comes to charitable giving, it’s essential to keep accurate records and understand the tax implications. Itemizing your deductions on IRS Schedule A allows you to deduct charitable donations, but it’s crucial to keep in mind that itemized deductions may only provide tax benefits when they exceed the standard deduction for your filing status. To substantiate your deductions, make sure to obtain a receipt or acknowledgment from the charity that includes the organization’s name, the date of your gift, and the donated amount. If you receive any goods or services in exchange for your donation, the charity should provide a written disclosure statement.

Leveraging Appreciated Assets for Good

Donating highly appreciated assets, such as stocks or mutual funds, can be a tax-savvy way to support your favorite charities. By transferring these assets directly to a qualified organization, you can potentially avoid paying capital gains taxes on the appreciation while still claiming a deduction for the full fair market value of the asset. At GPS Wealth Management, we can help guide you through the process of donating appreciated assets and work with your tax professionals to ensure that your gift is properly documented and reported.

Your Partners in Philanthropy

At GPS Wealth Management, we understand that charitable giving is a deeply personal expression of your values and priorities. Our team of caring, knowledgeable professionals is here to help you navigate the financial aspects of philanthropy and create a gifting strategy that helps maximize your impact while aligning with your long-term financial goals. As you explore your charitable giving options this year-end, remember that we’re always here to provide guidance and support. Together, we can create a philanthropic plan that not only enhances your financial well-being but also makes a meaningful difference in the lives of others.

Schedule time with us today to learn more about how we can help you transform your generosity into lasting change.

*Links are being provided for information purposes only and not considered an endorsement. GPS Wealth Management and LPL Financial are not affiliated.