As the year-end approaches, gift giving is often at the forefront of everyone’s minds. Time and money is spent shopping for the perfect Christmas gifts for friends, family and loved ones. If you’re like many of us, mixed in with the holiday shopping deals are requests for support and donations from nonprofit partners in the community. End-of-year giving requests are an important piece of the nonprofit giving cycle as nonprofits hope to capitalize on last-minute efforts by donors to alleviate tax burdens. But strategic givers know that giving doesn’t have to happen at the end of the year – in fact, with a donor-advised fund, you can plan your giving strategically so end-of-year requests don’t have to break the bank.
So, why should a donor-advised fund be the answer to your end-of-year giving needs?
You can more easily field unexpected requests.
All of our resources are limited, and we know that money can be tight at the end of the year. While you may want to donate to a number of organizations, you might have already exceeded the amount you can donate for the year. A donor-advised fund allows you to earmark and budget funds specifically for philanthropy. This way, when end-of-year requests pour in, you have a pool of money in your fund that you can donate without impacting your cash flow. This gives you the freedom to plan and give more easily!
For tax purposes, you receive a tax benefit in the year you contribute to your donor-advised fund.
If you’re giving at the end of the year in a mad rush to alleviate your tax burdens – stop! Meet with a trusted financial advisor earlier in the year and create a giving plan that includes a donor-advised fund. You’ll receive a tax credit in the year that you contribute to your fund, and you won’t have to rush to find places to donate money at year-end. Trust us – strategic giving pays off!
We are called to give – and donor-advised funds help you give more freely.
God’s Word is clear that we are intended to give what we have to those who have less. As Christians, it’s a part of our calling!
“This is how we know what love is: Jesus Christ laid down His life for us. And we ought to lay down our lives for our brothers and sisters. If anyone has material possessions and sees a brother or sister in need but has no pity on them, how can the love of God be in that person? Dear children, let us not love with words or speech but with actions and in truth.”
– 1 John 3:16-18
As we enter into the giving season, search your heart for those organizations and missions that mean the most to you and your family. Letting children become involved in the giving process is a great way to encourage family bonding and instill the importance of giving at a young age.
If you have any questions about giving back or would like to create your own donor-advised fund to begin your own giving journey, feel free to give us a call at 901-682-6201.