Jan 6, 2021
The year 2020 has been an extremely challenging year for lots of people, businesses, and organizations. Therefore, this is also a time when charitable organizations may need help from donors more than ever. We dedicated today’s episode to exploring some of the tax-efficient strategies you can use to give to charity in a way that minimizes your tax impact. Stay tuned until the end of the episode, where Grant shares his favorite methods of charitable giving and some tips to optimize your tax benefits related to charitable donations.
[01:26] The CARES Act – Special provisions in the CARES act that encourage you to give cash gifts to charity.
[07:07] Qualification Criteria – What constitutes a qualified charitable gift and how to identify instances that do not qualify.
[11:04] Charity & Securities – How you can gift stocks or other appreciated assets to qualified charitable organizations and the tax benefits you receive in return.
[14:31] Roth IRA Conversions – How you can pair a substantially appreciated gift with a Roth IRA conversion to take advantage of some tax planning opportunities.
[17:00] Qualified Charitable Distributions – When you reach the age where you have to take mandatory distributions from your retirement funds, you can divert these distributions to qualified charitable organizations. Grant explains how this works and what benefits you receive in return.
[21:04] Donor-advised Fund – How donor-advised funds help you be consistent with your charitable donations while optimizing your tax benefits.
[25:57] Charitable Remainder Trusts & Charitable Lead Trusts – Grant explains how the two types of trusts work, the process of configuring these trusts, benefits you might receive, and how to decide whether these trusts are a good fit for you.
[33:49] Tips & Tricks – Grant shares his wisdom on tips & tricks to optimize your tax benefits related to charitable donations.
Resources:
Donor-Advised Funds:
irs.gov/charities-non-profits/charitable-organizations/donor-advised-funds
6 Ways to Minimize Required Minimum Distributions:
abovethecanopy.us/6-ways-minimize-required-minimum-distributions/