Shakespeare Blog: View from the Lake

Group 512

Reminders for Charitable Giving

Written By: Nick Ziarek, CFP®, CFA

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1) You maximize the tax efficiency by donating appreciated stock compared to cash.

2) If you write checks to charity directly from your IRA to satisfy your Required Minimum Distributions (RMD), remember to send those checks out early. The charities must receive and deposit the check before year-end for it to be a qualified charitable distribution (QCD) this year. Also, a best practice is to take the checkbook for your IRA and write across it – CHARITY ONLY – so as not to confuse with your daily checkbook.

3) You will need to itemize your taxes for a charitable deduction this year. The above the line $300 deduction for charitable gifts ($600 for Married Filing Joint) was not extended past the original 2021 expiration date.