In the seasonal spirit of giving, Landaas investment advisors devoted a Money Talk Podcast episode to suggesting strategic ways for investors to be charitable.
Learn more
Gratitude is an enriching attitude, by Joel Dresang
Bigger bang from charitable contributions, a Money Talk Video with Art Rothschild
Charitable Contributions, IRS Tax Topic
An IRS FAQ on qualified charitable distributions from IRAs
“We touch on a part of our business that I think is so critical to our communities, our families, our neighbors: And that is how we give away our money,” Kyle Tetting said to begin the podcast. “At this time of year, it’s so important to give thanks for all we have on what has been another incredibly strong year.”
The strength of investment returns in 2024 should encourage generosity, Kyle said. “There’s plenty of excess to go around. There’s plenty of fruit to be harvested.”
After noting that investors should consult tax professionals to find charitable strategies that best fit their individual circumstances, Kyle, Art Rothschild and Steve Giles explained several ways to be generous, including:
- Giving cash
- Gifting appreciated assets
- Using qualified charitable distributions
- Using donor-advised funds
- Gifting to children and grandchildren
Of qualified charitable distributions (QCDs), Art said, “For any number of reasons, this has become my favorite way to give money to charity. It’s also become popular with very many of our clients.”
QCDs allow those who are 70½ and older to give directly to a qualified charity while fulfilling their annual required minimal distribution from an IRA. In the process, they benefit the charity and also avoid taking income on which they’d otherwise be taxed.
“You can have your cake and eat it, too,” Art said. He also noted that unlike other types of charitable deductions, QCDs are available to retirees who take the standard deduction on their tax returns.
“It’s so important to understand that there is such a wide range of opportunities out there for giving whether it’s to charity, whether it’s to family,” Kyle said. Investors interested in sharing their wealth should talk with their advisors about the best ways for making that happen.
Click here to listen to the 2024 Giving Podcast.
ONLINE GUIDES FOR SCRUTINIZING CHARITIES:
- GuideStar
- IRS Search for Tax Exempt Organizations
- Donating to Charity, from the Federal Trade Commission
- BBB Wise Giving Alliance
- Charity Navigator
- Charity Watch