Incorporating High-Income Tax Planning into Wealth Management
[et_pb_section fb_built="1" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][et_pb_row _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][et_pb_image src="https://5280associates.com/wp-content/uploads/2025/03/high-income-tax-planning-scaled.jpg" title_text="Happy,Older,Latin,Company,Executive,Project,Manager,Planning,Strategy,Discussing" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][/et_pb_image][et_pb_divider show_divider="off" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][/et_pb_divider][et_pb_text admin_label="p: Intro" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"]For high-income earners, tax planning isn’t just about complying with the law—it’s a critical strategy for preserving wealth and minimizing unnecessary liabilities. The U.S. tax code is complex, and without proper planning, high-net-worth individuals may face steep tax bills, reduced investment returns, and missed opportunities for financial optimization.
Unlike middle-income earners, those in higher tax brackets must navigate additional challenges, including phase-outs, capital gains taxes, Social Security taxation, and Medicare premium adjustments. However, with proactive tax planning, numerous opportunities exist to mitigate these costs, ensuring long-term financial security and efficient wealth transfer.
This guide explores key tax-efficient strategies for high earners, covering proactive tax planning, investment optimization, and charitable giving approaches. By leveraging expert insights and data-driven strategies individuals may take control of their financial future while minimizing tax burdens.
[/et_pb_text][et_pb_divider show_divider="off" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][/et_pb_divider][et_pb_heading title="Proactive Tax Planning Strategies: Building a Secure Future " admin_label="h2: Proactive Tax Planning Strategies: Building a Secure Future " _builder_version="4.27.4" _module_preset="default" title_level="h2" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="p: Proactive Tax Planning Strategies: Building a Secure Future " _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"]Effective tax planning isn’t about making last-minute adjustments before filing season—it’s about creating a proactive, long-term strategy that aligns with your financial goals. High-net-worth individuals who take a strategic approach to tax planning can significantly reduce their tax liabilities while positioning themselves for future success.
A knowledgeable tax advisor can help with anticipating changes in tax laws and adjust your strategies accordingly. Our partnership with Helios Quant provides a data-driven approach to tax-efficient financial planning with their latest mathematical research and economic trends inform our strategies.
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row column_structure="3_5,2_5" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][et_pb_column type="3_5" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][et_pb_heading title="Investment Planning " admin_label="h3: Investment Planning " _builder_version="4.27.4" _module_preset="default" title_level="h3" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="p: Investment Planning " _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"]A tax-efficient investment portfolio is essential for wealth preservation and growth. Strategic tax planning in this area includes:
Investment Income Optimization: Implementing asset location strategies, such as placing tax-inefficient investments in tax-advantaged accounts, can reduce overall tax burdens.
Capital Gains Planning: Utilizing tax-loss harvesting and timing asset sales strategically to manage tax exposure, potentially saving tens of thousands of dollars in taxes over time.
[/et_pb_text][/et_pb_column][et_pb_column type="2_5" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][et_pb_image src="https://5280associates.com/wp-content/uploads/2025/03/proactive-tax-planning_column.png" title_text="proactive-tax-planning_column" align="center" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][/et_pb_image][/et_pb_column][/et_pb_row][et_pb_row column_structure="2_5,3_5" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][et_pb_column type="2_5" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][et_pb_image src="https://5280associates.com/wp-content/uploads/2025/03/reitrement-tax-planning_column.png" title_text="reitrement-tax-planning_column" show_bottom_space="off" align="center" _builder_version="4.27.4" _module_preset="default" module_alignment="center" global_colors_info="{}"][/et_pb_image][/et_pb_column][et_pb_column type="3_5" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][et_pb_heading title="Retirement Planning" admin_label="h3: Retirement Planning " _builder_version="4.27.4" _module_preset="default" title_level="h3" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="p: Retirement Planning" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"]A tax-efficient retirement strategy can make the difference between financial security and unnecessary tax burdens for high-income earners. Two key approaches include Roth IRA Conversions and Required Minimum Distributions (RMDs)
Roth IRA Conversions: Converting traditional IRA assets to Roth IRAs can provide tax-free growth and eliminate future Required Minimum Distributions (RMDs). This strategy is beneficial for individuals expecting higher tax rates in retirement.
RMD Planning: Required Minimum Distributions (RMDs) can create significant tax liabilities—planning ahead can help mitigate their impact and extend tax deferral benefits.
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][et_pb_heading title="Progressive Tax System and Its Impact " admin_label="h2: Progressive Tax System and Its Impact" _builder_version="4.27.4" _module_preset="default" title_level="h2" title_text_color="#cb353c" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="p: Progressive Tax System and Its Impact" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"]The U.S. tax system uses a progressive structure, meaning it taxes higher income levels at incrementally higher rates. For high earners, this means not only facing the highest tax brackets but also encountering additional surcharges such as the Net Investment Income Tax (NIIT) and Medicare Surtax, which further increase tax liabilities.
[/et_pb_text][et_pb_heading title="Understanding Your Tax Landscape" admin_label="h2: Understanding Your Tax Landscape" _builder_version="4.27.4" _module_preset="default" title_level="h2" title_text_color="#cb353c" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="p: Understanding Your Tax Landscape" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"]High-income earners face a unique tax environment that requires careful attention to detail. Unlike lower tax brackets, where deductions and credits are more widely available, wealthier individuals must contend with limitations, phase-outs, and additional taxes that can significantly impact their financial landscape. Understanding these factors is the first step in creating an effective tax plan.
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][et_pb_heading title="Tax-Efficient Charitable Giving: Aligning Philanthropy with Financial Goals " admin_label="h2: Tax-Efficient Charitable Giving: Aligning Philanthropy with Financial Goals " _builder_version="4.27.4" _module_preset="default" title_level="h2" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="p: Tax-Efficient Charitable Giving: Aligning Philanthropy with Financial Goals " _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"]Tax-efficient charitable planning is a powerful tool for high-income earners, offering personal fulfillment and significant tax advantages. A well-planned philanthropic strategy can help reduce taxable income while supporting meaningful causes. However, not all charitable contributions are created equal—selecting the right giving vehicles can enhance financial outcomes while maximizing impact.
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Leveraging Charitable Distributions from IRA for Tax Savings
[et_pb_section fb_built="1" _builder_version="4.27.3" _module_preset="default" global_colors_info="{}"][et_pb_row _builder_version="4.27.3" _module_preset="default" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.27.3" _module_preset="default" global_colors_info="{}"][et_pb_image src="https://5280associates.com/wp-content/uploads/2024/12/leveraging-charitable-distributions-from-ira-scaled.jpg" title_text="Winter,Hiking,Foothills,Of,Rocky,Mountains,In,Northern,Colorado,,Coyote" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][/et_pb_image][et_pb_divider show_divider="off" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][/et_pb_divider][et_pb_heading title="Using Your IRA for Charitable Donations" admin_label="h2: Using Your IRA for Charitable Donations" _builder_version="4.27.4" _module_preset="default" title_level="h2" title_text_color="#5b6770" title_font_size="32px" hover_enabled="0" global_colors_info="{}" sticky_enabled="0"][/et_pb_heading][et_pb_text admin_label="p: intro" _builder_version="4.27.4" _module_preset="default" hover_enabled="0" global_colors_info="{}" sticky_enabled="0"]Retirement is an exciting time of life, full of opportunities to explore new interests and support the causes you care about most. It’s also a time when your financial priorities may shift. Losing a regular source of income may introduce complications to your budgeting, but retirement offers new strategies for tax-efficient charitable giving. One such strategy is using charitable distributions from your IRA.
A Qualified Charitable Distribution (QCD) allows you to donate pre-tax dollars directly from your IRA to an eligible charity, making a meaningful impact while reducing your taxable income. This unique giving option is especially beneficial for retirees subject to Required Minimum Distributions (RMDs), offering both philanthropic and financial advantages. In this blog, we’ll explore how QCDs work, their key benefits, and how you can take advantage of this powerful strategy.
[/et_pb_text][et_pb_divider show_divider="off" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][/et_pb_divider][et_pb_heading title="What is a Qualified Charitable Distribution (QCD) and Why Does it Matter?" admin_label="h2: What is a Qualified Charitable Distribution (QCD) and Why Does it Matter?" _builder_version="4.27.4" _module_preset="default" title_level="h2" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="p: What is a Qualified Charitable Distribution (QCD) and Why Does it Matter?" _builder_version="4.27.3" _module_preset="default" global_colors_info="{}"]A QCD is a direct transfer of funds from your IRA to a qualified charitable organization. Unlike a typical IRA withdrawal, which is taxed as ordinary income, a QCD is excluded from your taxable income. This makes it a highly efficient way to support causes you’re passionate about while optimizing your finances.
One of the most appealing features of QCDs is their ability to satisfy your RMDs. Once you reach the age of 73 (or 70½ for QCD eligibility), the IRS requires you to withdraw a minimum amount from your IRA each year. These distributions are usually taxable, but when directed to a charity as a QCD, the amount is tax-free and still counts toward your RMD for the year. This dual benefit makes QCDs a compelling option for many retirees.
[/et_pb_text][et_pb_heading title="The Financial Benefits of Giving Through a QCD " admin_label="h3: The Financial Benefits of Giving Through a QCD " _builder_version="4.27.3" _module_preset="default" title_level="h3" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="p: The Financial Benefits of Giving Through a QCD" _builder_version="4.27.3" _module_preset="default" global_colors_info="{}"]The tax advantages of QCDs go beyond the simple exclusion from taxable income. By lowering your Adjusted Gross Income (AGI), a QCD can have a ripple effect on other aspects of your financial picture. A lower AGI may reduce the taxes you owe on Social Security benefits, lower your Medicare premiums, or help you qualify for certain tax credits.
Additionally, QCDs allow you to give more strategically. Unlike cash donations, which are subject to AGI-based limits for deductibility, QCDs bypass these restrictions entirely. By making a charitable distribution from an IRA, you can still optimize tax savings while making a meaningful contribution.
Another key advantage is the long-term impact on your IRA balance. Using pre-tax dollars for charitable giving reduces the size of your IRA, potentially lowering future RMDs and the associated taxes. Over time, this can lead to substantial savings, especially for those with large retirement account balances.
[/et_pb_text][et_pb_heading title="Making the Most of Charitable Distributions from your IRA " admin_label="h3: Making the Most of Charitable Distributions from your IRA " _builder_version="4.27.3" _module_preset="default" title_level="h3" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="p: Making the Most of Charitable Distributions from your IRA " _builder_version="4.27.3" _module_preset="default" global_colors_info="{}"]To take advantage of the benefits of a QCD, it’s essential to follow the rules carefully. First, only individuals aged 70½ or older are eligible to make a QCD. Additionally, the distribution must come directly from an IRA—not a 401(k) or similar account—though you can roll over funds into an IRA to qualify.
The donation must be sent directly from your IRA custodian to the charity to retain its tax-free status. If you withdraw the funds and then donate them, the distribution will be treated as taxable income. It’s also essential to ensure the organization receiving the donation qualifies as an IRS-approved charity, as donor-advised funds and private foundations are not eligible for QCDs.
Timing is another critical consideration, and the QCD must be processed by December 31 of the tax year. Proper documentation is also crucial: you’ll need a written acknowledgment from the charity to substantiate the donation.
[/et_pb_text][et_pb_heading title="Is a QCD Right for You? " admin_label="h2: Is a QCD Right for You? " _builder_version="4.27.3" _module_preset="default" title_level="h2" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="p: Is a QCD Right for You? " _builder_version="4.27.3" _module_preset="default" global_colors_info="{}"]While QCDs offer significant benefits, they aren’t the best solution for everyone. For some individuals, donating appreciated stock may provide greater tax advantages by allowing you to avoid capital gains while still making your charitable contribution. Others may find that strategies like donor-advised funds better align with their philanthropic goals.
If you’re unsure whether a QCD is the right fit, consulting with a wealth manager or tax advisor can help. These professionals can evaluate your unique financial situation and guide you toward the most effective strategies for meeting both your charitable and financial objectives.
[/et_pb_text][et_pb_heading title="Unlock Your Charitable Potential with 5280 Associates " admin_label="h2: Unlock Your Charitable Potential with 5280 Associates " _builder_version="4.27.3" _module_preset="default" title_level="h2" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="p: Unlock Your Charitable Potential with 5280 Associates " _builder_version="4.27.3" _module_preset="default" global_colors_info="{}"]Retirement offers the chance to give back in ways that weren’t possible before, and charitable contributions from your IRA provides a smart, efficient way to do so. With this powerful donation mechanism, you can reduce your tax burden, fulfill your RMD obligations, and make a lasting impact on the causes you care about.
If you’re ready to explore how QCDs can elevate your giving strategy in retirement, contact 5280 Associates today. Together, we can build a customized strategy to help unlock your charitable potential.
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Philanthropy and Wealth Management | Five Strategies to Amplify Your Giving
[et_pb_section fb_built="1" admin_label="section" _builder_version="4.16" global_colors_info="{}"][et_pb_row admin_label="row" _builder_version="4.16" background_size="initial" background_position="top_left" background_repeat="repeat" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.16" custom_padding="|||" global_colors_info="{}" custom_padding__hover="|||"][et_pb_text _builder_version="4.27.2" _module_preset="default" hover_enabled="0" sticky_enabled="0" admin_label="p: Intro"]If you ask five people why they make charitable contributions, you will most likely get five different answers. Whether they want to better their communities, support causes close to their hearts, or have a positive social impact, one thing unites all donors—the desire to do good. Rarely will you hear someone cite tax benefits as a reason for giving, but this doesn’t mean the tax benefits should be ignored. When high-net-worth individuals (HNWIs) make donations with tax efficiencies in mind, it often results in more meaningful contributions and better financial health. Whether you are an active donor or considering donating, uniting philanthropy and wealth management must be a central part of your financial strategy.
Below, we will examine five of the best strategies to help amplify your giving.
Donor-advised funds offer a tax-efficient way for donors to make charitable contributions to a variety of organizations. By contributing assets such as cash, securities, or real estate to a DAF, donors receive an immediate tax deduction while allowing the fund to grow tax-free until they decide which charities to support. This strategy allows you to time donations to align with tax planning and market conditions.
[/et_pb_text][/et_pb_column][et_pb_column _builder_version="4.27.2" _module_preset="default" type="3_5"][et_pb_image _builder_version="4.27.2" _module_preset="default" alt="Group of people starting a donor-advised fund" src="https://5280associates.com/wp-content/uploads/2024/08/how-to-start-daf_hero-scaled.jpg" hover_enabled="0" sticky_enabled="0" border_radii="on|15px|15px|15px|15px" admin_label="Image: DAFs"][/et_pb_image][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.27.2" _module_preset="default" theme_builder_area="post_content"][et_pb_column _builder_version="4.27.2" _module_preset="default" type="4_4" theme_builder_area="post_content"][et_pb_heading _builder_version="4.27.2" _module_preset="default" theme_builder_area="post_content" title="2. Charitable Trusts " title_level="h3" hover_enabled="0" sticky_enabled="0" admin_label="h3: 2. Charitable Trusts" title_font_size="25px"][/et_pb_heading][et_pb_text _builder_version="4.27.2" _module_preset="default" theme_builder_area="post_content" hover_enabled="0" sticky_enabled="0" admin_label="p: Charitable Trusts"]Charitable Remainder Trusts (CRTs) and Charitable Lead Trusts (CLTs) are strategic tools that enable high-net-worth individuals to align their philanthropic goals with effective wealth management. Both types of trusts provide a mechanism for individuals to contribute to charitable causes while simultaneously gaining financial and tax benefits. They each offer unique structures that balance immediate charitable support with long-term financial planning, allowing donors to create a meaningful legacy.
[/et_pb_text][et_pb_toggle _builder_version="4.27.2" _module_preset="default" theme_builder_area="post_content" title="Charitable Remainder Trusts (CRTs)" hover_enabled="0" sticky_enabled="0" admin_label="Toggle: CRTs"]CRTs allow donors to receive income from the trust assets for a specified term or their lifetime, with the remainder going to charity upon the trust's termination. They provide immediate income tax deductions and capital gains tax avoidance, preserving assets while enabling philanthropy.
[/et_pb_toggle][et_pb_toggle _builder_version="4.27.2" _module_preset="default" theme_builder_area="post_content" title="Charitable Lead Trusts (CLTs)" hover_enabled="0" sticky_enabled="0" admin_label="Toggle: CLTs"]CLTs direct income generated by trust assets to charitable organizations for a predetermined period, with the remainder benefiting the donor’s heirs afterward. They offer upfront tax benefits through income tax deductions and help reduce the taxable estate, allowing for strategic wealth transfer while supporting charitable causes.
[/et_pb_toggle][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.27.2" _module_preset="default"][et_pb_column _builder_version="4.27.2" _module_preset="default" type="4_4"][et_pb_heading _builder_version="4.27.2" _module_preset="default" title="3. Donating Appreciated Assets " title_level="h3" hover_enabled="0" sticky_enabled="0" admin_label="h3: 3. Donating Appreciated Assets" title_font_size="25px"][/et_pb_heading][et_pb_text _builder_version="4.27.2" _module_preset="default" hover_enabled="0" sticky_enabled="0" admin_label="p: Donating Appreciated Assets"]Donating appreciated assets, such as securities or real estate, is a powerful way for high-net-worth individuals (HNWIs) to amplify their charitable giving while reaping significant tax benefits. By contributing assets that have increased in value, donors can avoid paying capital gains taxes on the appreciation and claim a charitable deduction based on the asset's fair market value.
For example, if you donate stock worth $20,000 that you purchased for $10,000, you can deduct the full $20,000 from your taxable income, maximizing the impact of your gift. This strategy supports charitable causes and helps reduce your taxable estate, making it an effective tool for aligning philanthropy with financial planning.
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.27.2" _module_preset="default" column_structure="3_5,2_5"][et_pb_column _builder_version="4.27.2" _module_preset="default" type="3_5"][et_pb_image _builder_version="4.27.2" _module_preset="default" hover_enabled="0" sticky_enabled="0" admin_label="Image: QCDs" alt="Couple donating qualified charitable distributions from an IRA" src="https://5280associates.com/wp-content/uploads/2024/11/qcd_body-scaled.jpg" border_radii="on|15px|15px|15px|15px"][/et_pb_image][/et_pb_column][et_pb_column _builder_version="4.27.2" _module_preset="default" type="2_5"][et_pb_divider _builder_version="4.27.2" _module_preset="default" show_divider="off" hover_enabled="0" sticky_enabled="0"][/et_pb_divider][et_pb_heading _builder_version="4.27.2" _module_preset="default" title="3. Qualified Charitable Distributions (QCDs)" title_level="h3" hover_enabled="0" sticky_enabled="0" admin_label="h3: QCDs" title_font_size="25px"][/et_pb_heading][et_pb_divider _builder_version="4.27.2" _module_preset="default" show_divider="off" hover_enabled="0" sticky_enabled="0"][/et_pb_divider][et_pb_text _builder_version="4.27.2" _module_preset="default" hover_enabled="0" sticky_enabled="0" admin_label="p: QCDs"]For individuals aged 70½ or older, QCDs offer a way to donate directly from an IRA to a charity, satisfying Required Minimum Distributions (RMDs) while avoiding taxable income. This strategy is particularly useful for those who do not need their RMD for living expenses but want to support charitable causes.
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.27.2" _module_preset="default"][et_pb_column _builder_version="4.27.2" _module_preset="default" type="4_4"][et_pb_heading _builder_version="4.27.2" _module_preset="default" title="5. Private Family Foundations " title_level="h3" hover_enabled="0" sticky_enabled="0" admin_label="h3: 5. Private Family Foundations " title_font_size="25px"][/et_pb_heading][et_pb_text _builder_version="4.27.2" _module_preset="default" hover_enabled="0" sticky_enabled="0" admin_label="p: 5. Private Family Foundations "]Creating a private foundation offers donors greater control over their charitable giving, allowing them to make grants to multiple organizations and involve family members in philanthropy. While foundations come with administrative responsibilities and costs, they offer significant tax benefits, including deductions for charitable contributions and the ability to retain control over assets.
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.27.2" _module_preset="default" theme_builder_area="post_content"][et_pb_column _builder_version="4.27.2" _module_preset="default" type="4_4" theme_builder_area="post_content"][et_pb_heading _builder_version="4.27.2" _module_preset="default" theme_builder_area="post_content" title="5280 Associates Can Help Your Donation Go Further " title_level="h2" hover_enabled="0" sticky_enabled="0" admin_label="h2: 5280 Associates Can Help Your Donation Go Further " title_font_size="28px"][/et_pb_heading][et_pb_text _builder_version="4.27.2" _module_preset="default" theme_builder_area="post_content" admin_label="p: 5280 Associates Can Help Your Donation Go Further " hover_enabled="0" sticky_enabled="0"]Integrating philanthropy and wealth management is essential for high-net-worth individuals seeking to make a meaningful impact through their charitable contributions. By employing strategies such as Donor-Advised Funds, charitable trusts, and donating appreciated assets, donors can amplify their giving while optimizing tax efficiency. This strategic approach not only enhances the benefits of charitable giving but also supports long-term financial goals.
At 5280 Associates, we understand that effective philanthropy requires a thoughtful balance between giving and wealth management. Our commitment to transparent, flat-fee financial planning empowers you to pursue your philanthropic vision without worrying about hidden costs. Let us guide you in creating a comprehensive strategy that aligns your charitable goals with your financial objectives, ensuring your legacy leaves a lasting impact.
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.27.2" _module_preset="default" theme_builder_area="post_content"][et_pb_column _builder_version="4.27.2" _module_preset="default" type="4_4" theme_builder_area="post_content"][et_pb_button _builder_version="4.27.2" _module_preset="default" theme_builder_area="post_content" button_text="Unlock Your Charitable Potential" button_url="https://5280associates.com/contact/" hover_enabled="0" sticky_enabled="0" button_alignment="center"][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]
Donating Appreciated Stock to Maximize Social Impact
[et_pb_section fb_built="1" _builder_version="4.27.2" _module_preset="default" custom_padding="0px||5px|||" global_colors_info="{}"][et_pb_row _builder_version="4.27.2" _module_preset="default" custom_padding="||6px|||" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.27.2" _module_preset="default" global_colors_info="{}"][et_pb_image src="https://5280associates.com/wp-content/uploads/2024/10/donating-appreciated-stock_hero-scaled.jpg" alt="smiling couple donating appreciated stock to charity on a laptop" _builder_version="4.27.2" _module_preset="default" global_colors_info="{}"][/et_pb_image][et_pb_heading title="Donating Appreciated Stock" admin_label="H1: Donating Appreciated Stock" _builder_version="4.27.2" _module_preset="default" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="P: Donating appreciated stock" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"]As a high-net-worth individual, you’ve likely already made generous charitable contributions. But did you know there’s a tax-efficient strategy to make your donations go even further? While cash donations are common, there’s a smarter, more tax-efficient strategy that can significantly increase the value of your gift: donating appreciated stock to charity.
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row column_structure="1_2,1_2" _builder_version="4.27.2" _module_preset="default" custom_padding="3px||5px|||" global_colors_info="{}"][et_pb_column type="1_2" admin_label="Column" _builder_version="4.27.2" _module_preset="default" global_colors_info="{}"][et_pb_heading title="Donating Appreciated Stock to Maximize Social Impact" admin_label="H2: Donating Appreciated Stock to Maximize Social Impact" _builder_version="4.27.2" _module_preset="default" title_level="h2" title_font_size="24px" custom_margin="2px|||||" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="P: Donating appreciated stock to maximize social impact" _builder_version="4.27.2" _module_preset="default" global_colors_info="{}"]If you’re looking to unlock the full potential of your charitable giving, our whitepaper, "Donating Appreciated Assets: Maximizing Impact While Reducing Tax Burden," will help you understand to advantages of donating appreciated assets rather than cash.
In the whitepaper, we break down the benefits of donating stock, explain how it can help diversify your portfolio, and outline key tax strategies to ensure you maximize your financial potential.
By contributing securities that would otherwise cause a tax liability, you can support causes that you care about while minimizing your tax burden. Don’t miss out on this tax-efficient strategy that could transform the way you give.
Download our free whitepaper now to learn how to maximize your impact and reduce your taxes with intelligent donation strategies.
[/et_pb_text][/et_pb_column][et_pb_column type="1_2" _builder_version="4.27.2" _module_preset="default" background_color="rgba(81,88,104,0.28)" custom_padding="|19px||19px|false|true" global_colors_info="{}"][et_pb_heading title="Download Our Whitepaper for Expert Insights" admin_label="H2: Donating Appreciated Stock to Maximize Social Impact" _builder_version="4.27.2" _module_preset="default" title_level="h2" title_text_align="center" title_font_size="24px" custom_margin="2px|||||" global_colors_info="{}"][/et_pb_heading][et_pb_code _builder_version="4.27.2" _module_preset="default" global_colors_info="{}"][gravityform id="2" title="false" description="false" ajax="true"][/et_pb_code][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.27.2" _module_preset="default" custom_padding="2px|||||" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.27.2" _module_preset="default" global_colors_info="{}"][et_pb_heading title="Why Donate Stock Instead of Cash? " admin_label="H2: Why Donate Stock Instead of Cash" _builder_version="4.27.2" _module_preset="default" title_level="h2" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="P: Why donate stock instead of cash" _builder_version="4.27.2" _module_preset="default" global_colors_info="{}"]When you donate stock that has appreciated in value, you not only support a worthy cause but also enjoy substantial tax benefits. By donating stock that you’ve held for over a year, you can avoid paying capital gains tax while still claiming a charitable deduction based on the stock's full market value. This can result in a larger tax break and a bigger overall impact for your chosen charity.
[/et_pb_text][et_pb_heading title="Get Started Today" admin_label="H2: Get Started Today" _builder_version="4.27.2" _module_preset="default" title_level="h2" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="P: Get started today" _builder_version="4.27.2" _module_preset="default" global_colors_info="{}"]The tax benefit of stock is typically limited to tax-loss harvesting, an advanced strategy that utilizes under-performing stock to offset capital gains. While this method is useful, it can be time-consuming and maxes out at a limit of $3,000 per tax year. For donors looking to harness the power of high-performing assets, donating stock to charity is a powerful too.
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.27.2" _module_preset="default" custom_padding="3px||5px|||" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.27.2" _module_preset="default" background_color="rgba(81,88,104,0.28)" custom_padding="|19px||19px|false|true" global_colors_info="{}"][et_pb_heading title="Download Our Whitepaper for Expert Insights" admin_label="H2: Donating Appreciated Stock to Maximize Social Impact" _builder_version="4.27.2" _module_preset="default" title_level="h2" title_text_align="center" title_font_size="24px" custom_margin="2px|||||" global_colors_info="{}"][/et_pb_heading][et_pb_code _builder_version="4.27.2" _module_preset="default" global_colors_info="{}"][gravityform id="2" title="false" description="false" ajax="true"][/et_pb_code][/et_pb_column][/et_pb_row][/et_pb_section]
How to Start a Donor-Advised Fund (DAF)
[et_pb_section fb_built="1" _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"][et_pb_row _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"][et_pb_image src="https://5280associates.com/wp-content/uploads/2025/01/bunching-charitable-contributions-scaled.jpg" title_text="Park,,Woman,And,Laugh,Planning,With,Tablet,For,Volunteer,Teamwork," _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][/et_pb_image][et_pb_text admin_label="h2: What is a DAF" _builder_version="4.27.4" _module_preset="default" header_2_text_color="#5b6770" global_colors_info="{}"]What is a Donor-Advised Fund?
[/et_pb_text][et_pb_text admin_label="p: what is a DAF" _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"]A donor-advised fund (DAF) is a charitable investment account that allows donors to make a substantial, upfront contribution, receive an immediate tax deduction, and then distribute the funds to their chosen charities over time. This approach offers flexibility in charitable giving and is a powerful tool for tax-efficient charitable planning. It enables donors to optimize their tax benefits while thoughtfully planning their philanthropy. It’s important to note that contributions to a DAF are irrevocable, so having a sound financial plan is essential before getting started.
[/et_pb_text][et_pb_divider show_divider="off" _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"][/et_pb_divider][et_pb_text admin_label="h3: Missed Opportunity for Deductions" _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"]The Missed Opportunity for Charitable Deductions
[/et_pb_text][et_pb_text admin_label="p: missed opportunity for deductions" _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"]Imagine this: Jane, a passionate supporter of environmental causes, donates a few thousand dollars every year to her favorite charities. However, because she files a standard deduction on her taxes, she misses out on the benefits of itemizing her charitable donations. Frustrated by the lack of tax benefits, Jane feels disheartened, wondering if there's a better way to maximize her impact while taking advantage of tax benefits.
This is where a donor-advised fund (DAF) can come into play. By opening a DAF, Jane could make a significant, upfront charitable contribution, receive an immediate tax deduction, and then spread her charitable giving over several years. Not only would she enjoy significant tax savings, but she could also carry forward the deduction for up to five years, allowing her to plan her philanthropy strategically.
[/et_pb_text][et_pb_cta title="Start a Donor-Advised Fund" button_url="https://5280associates.com/contact/" button_text="Start a Donor-Advised Fund" admin_label="Call To Action" _builder_version="4.27.0" _module_preset="default" use_background_color="off" global_colors_info="{}"][/et_pb_cta][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"][et_pb_image src="https://5280associates.com/wp-content/uploads/2024/08/how-to-start-daf_hero-scaled.jpg" alt="Group of people starting a donor-advised fund" title_text="Huddle,,Happy,And,Group,Of,People,Outdoor,With,Collaboration,,Teamwork" force_fullwidth="on" _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"][/et_pb_image][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"][et_pb_text admin_label="h2: How to Start a DAF" _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"]How to Start a Donor-Advised Fund (DAF)
[/et_pb_text][et_pb_text admin_label="h3: Choose a Sponsoring Organization" _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"]1. Choose a Sponsoring Organization
[/et_pb_text][et_pb_text admin_label="p: choose a sponsoring organization" _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"]The first step in setting up a DAF is selecting a sponsoring organization. This could be a national charity, a community foundation, or a financial institution. Each sponsor has different minimum contribution requirements, fees, and investment options, so choosing one that aligns with your charitable goals and financial situation is essential.
[/et_pb_text][et_pb_text admin_label="h3: Make Your Initial Contribution " _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"]2. Make Your Initial Contribution
[/et_pb_text][et_pb_text admin_label="p: make your initial contribution " _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"]Once you've selected a sponsoring organization, you'll need to make an initial contribution to fund your DAF. Your initial contribution can be cash, stocks, or other assets. The amount you contribute is tax-deductible in the year you make it, providing you with an immediate tax benefit. If you choose to donate appreciated securities, you'll also avoid paying capital gains tax.
[/et_pb_text][et_pb_text admin_label="h3: Select Investment Options" _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"]3. Select Investment Options
[/et_pb_text][et_pb_text admin_label="p: select investment options" _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"]After funding your DAF, you must decide how the assets should be invested. Most sponsoring organizations offer a range of investment options, from conservative to aggressive portfolios. The returns generated by these investments can grow tax-free, increasing the amount available for charitable grants over time.
[/et_pb_text][et_pb_text admin_label="h3: Recommend Grants to Charities " _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"]4. Recommend Grants to Charities
[/et_pb_text][et_pb_text admin_label="p: recommend grants to charities" _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"]With your DAF funded and invested, you can now start recommending grants to your favorite charities. You can advise on how much and how often to distribute funds. There's no rush—grants can be distributed over several years, allowing you to support charities when they need it most. With advanced giving strategies, the capital in your DAF can continue to grow tax-free, which boosts your charitable impact.
[/et_pb_text][et_pb_text admin_label="h3: Keep Records and Stay Informed " _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"]5. Keep Records and Stay Informed
[/et_pb_text][et_pb_text admin_label="p: keep records and stay informed " _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"]It's important to keep thorough records of your contributions and grants and stay informed about the rules and regulations governing DAFs. For example, while you have advisory privileges, the final decision on grant approvals rests with the sponsoring organization, and there are restrictions on certain types of charities. The IRS offers a search tool that allows donors to confirm whether or not an organization is tax-exempt and eligible to receive contributions from a DAF.
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"][et_pb_text admin_label="h2: Start a Donor-Advised Fund with Professional Guidance " _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"]Start a Donor-Advised Fund with Professional Guidance
[/et_pb_text][et_pb_text admin_label="p: start a donor-advised fund with professional guidance " _builder_version="4.27.0" _module_preset="default" global_colors_info="{}"]Starting a DAF can be a powerful way to maximize your charitable giving while optimizing tax benefits; however, the process can also be complex. This is where the charitable giving experts at 5280 Associates can help. Our team can guide you through each step, ensuring that your DAF aligns with your overall financial goals and philanthropic vision. We'll help you navigate the nuances, from choosing the right sponsoring organization to selecting investment options that can grow your charitable contributions.
Ready to start your Donor-Advised Fund? Contact us today to schedule a consultation and begin your journey toward impactful, tax-efficient philanthropy.
[/et_pb_text][et_pb_cta title="Start a Donor-Advised Fund" button_url="https://5280associates.com/contact/" button_text="Start a Donor-Advised Fund" admin_label="Call To Action" _builder_version="4.27.0" _module_preset="default" use_background_color="off" global_colors_info="{}"][/et_pb_cta][/et_pb_column][/et_pb_row][/et_pb_section]
Understanding Advanced Charitable Giving Strategies
[et_pb_section fb_built="1" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_row use_custom_gutter="on" gutter_width="1" admin_label="Intro" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_image src="https://5280associates.com/wp-content/uploads/2024/07/advanced-charitable-giving-strategies-couple.jpg" alt="Young couple setting up advanced charitable giving strategies" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][/et_pb_image][et_pb_divider show_divider="off" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][/et_pb_divider][et_pb_heading title="Tax-Advantaged Donations for a Greater Impact" admin_label="h2: intro" _builder_version="4.27.4" _module_preset="default" title_level="h2" title_text_color="#5b6770" title_font_size="32px" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="Intro paragraph" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"]Giving back is one of the most fulfilling ways to positively impact your community and leave a lasting legacy. The joy of seeing the difference your contribution makes is unmatched. Plus, as an added benefit, there are substantial tax advantages to charitable giving. While writing a check to your favorite charity is always appreciated, there are more efficient ways to support the causes you believe in. Advanced charitable giving strategies, such as a Donor-Advised Fund or Charitable Remainder Trust, can help you build your legacy, maximize your charitable impact, and benefit from tax efficiencies.
[/et_pb_text][et_pb_divider show_divider="off" _builder_version="4.27.4" _module_preset="default" global_colors_info="{}"][/et_pb_divider][et_pb_heading title="Popular Advanced Charitable Giving Strategies " admin_label="h2: Popular Advanced Charitable Giving Strateies" _builder_version="4.25.0" _module_preset="default" title_level="h2" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="Popular Advanced Charitable Giving Strategies Text" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"]Advanced charitable giving strategies go beyond basic donations by utilizing tax-efficient charitable planning techniques. These strategies offer a wide array of opportunities to support your favorite causes while reaping tax benefits. In this guide, we will explore some of the most popular advanced charitable giving strategies, including Donor-Advised Funds (DAFs), Qualified Charitable Distributions (QCDs), Charitable Lead Trusts (CLTs), Charitable Remainder Trusts (CRTs), bunching donations, and donating appreciated assets. Although many options are available, we will focus on these widely used strategies to give you a comprehensive overview.
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row column_structure="1_2,1_4,1_4" admin_label="Donor-Advised Funds" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_column type="1_2" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_heading title="Donor-Advised Funds " admin_label="h3: Donor-Advised Funds" _builder_version="4.25.0" _module_preset="default" title_level="h3" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="Donor-Advised Fund Text" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"]A Donor-Advised Fund (DAF) is a charitable investment account that allows donors to make a charitable contribution, receive an immediate tax deduction, and recommend grants from the fund over time. These funds have become increasingly popular due to their flexibility and tax benefits.
[/et_pb_text][/et_pb_column][et_pb_column type="1_4" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_toggle title="Pros" icon_color="#c8102e" open_icon_color="#cbc4bd" admin_label="DAF Pros" _builder_version="4.25.0" _module_preset="default" title_font_size="16px" custom_margin="50px||||false|false" custom_padding="||||false|false" global_colors_info="{}"]● Immediate tax deduction
● Flexibility in timing of grants
● Ability to grow contributions tax-free
● Anonymity in giving
[/et_pb_toggle][/et_pb_column][et_pb_column type="1_4" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_toggle title="Cons" icon_color="#c8102e" open_icon_color="#cbc4bd" admin_label="DAF Cons" _builder_version="4.25.0" _module_preset="default" custom_margin="50px||||false|false" custom_padding="||||false|false" global_colors_info="{}"]● Fees and administrative costs
● Limited investment options
● Irrevocable contributions
[/et_pb_toggle][/et_pb_column][/et_pb_row][et_pb_row column_structure="1_2,1_4,1_4" admin_label="Qualified Charitable Distribution" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_column type="1_2" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_text admin_label="h3: Qualified Charitable Distributions" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"]Qualified Charitable Distributions
[/et_pb_text][et_pb_text admin_label="QCD Text" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"]A Qualified Charitable Distribution (QCD) allows individuals over 70½ to make tax-free transfers from their IRAs directly to a qualified charity. This can count towards their required minimum distributions (RMDs) and provides a tax-efficient way to give.
[/et_pb_text][/et_pb_column][et_pb_column type="1_4" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_toggle title="Pros" icon_color="#c8102e" open_icon_color="#cbc4bd" open_toggle_icon_tablet="" open_toggle_icon_phone="" open_toggle_icon_last_edited="on|desktop" admin_label="QCD Pros" _builder_version="4.25.0" _module_preset="default" title_font_size="16px" body_text_align="left" custom_margin="50px||||false|false" custom_padding="||||false|false" global_colors_info="{}"]● Satisfies RMD requirements
● Reduces taxable income
● Direct transfer to charity
● No impact on itemized deductions
[/et_pb_toggle][/et_pb_column][et_pb_column type="1_4" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_toggle title="Cons" icon_color="#c8102e" open_icon_color="#cbc4bd" admin_label="QCD Cons" _builder_version="4.25.0" _module_preset="default" body_text_align="left" custom_margin="50px||||false|false" custom_padding="||||false|false" global_colors_info="{}"]● Limited to IRAs
● Maximum annual limit ($100,000)
● Only available to those over 70½
[/et_pb_toggle][/et_pb_column][/et_pb_row][et_pb_row column_structure="1_2,1_4,1_4" admin_label="Charitable Lead Trust" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_column type="1_2" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_heading title="Charitable Lead Trusts" admin_label="h3: Charitable Lead Trusts" _builder_version="4.25.0" _module_preset="default" title_level="h3" title_text_align="left" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="CLT Text" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"]A Charitable Lead Trust (CLT) provides income to a charity for a specified period, after which the remaining assets return to the donor or other beneficiaries. This can help reduce estate taxes and provide a steady income to a charity.
[/et_pb_text][/et_pb_column][et_pb_column type="1_4" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_toggle title="Pros" icon_color="#c8102e" open_icon_color="#cbc4bd" admin_label="CLT Pros" _builder_version="4.25.0" _module_preset="default" title_font_size="16px" body_text_align="left" custom_margin="50px||||false|false" custom_padding="||||false|false" global_colors_info="{}"]● Reduces estate taxes
● Provides steady income to charity
● Potentially lower gift taxes
[/et_pb_toggle][/et_pb_column][et_pb_column type="1_4" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_toggle title="Cons" icon_color="#c8102e" open_icon_color="#cbc4bd" admin_label="CLT Cons" _builder_version="4.25.0" _module_preset="default" body_text_align="left" custom_margin="50px||||false|false" custom_padding="||||false|false" global_colors_info="{}"]● Complex to set up
● Irrevocable
● Administration and legal costs
[/et_pb_toggle][/et_pb_column][/et_pb_row][et_pb_row column_structure="1_2,1_4,1_4" admin_label="Charitable Remainder Trust" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_column type="1_2" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_heading title="Charitable Remainder Trusts" admin_label="h3: Charitable Remainder Trusts" _builder_version="4.25.0" _module_preset="default" title_level="h3" title_text_align="left" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="CRT Text" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"]A Charitable Remainder Trust (CRT) is the reverse of a CLT. It provides income to the donor or other beneficiaries for a specified period, after which the remaining assets go to the designated charity. This strategy offers tax benefits and a potential income stream. It is important to note that the charitable donation must be at least 10% of the original fair market value of all assets transferred to the trust.
[/et_pb_text][/et_pb_column][et_pb_column type="1_4" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_toggle title="Pros" icon_color="#c8102e" open_icon_color="#cbc4bd" admin_label="CRT Pros" _builder_version="4.25.0" _module_preset="default" title_font_size="16px" body_text_align="left" custom_margin="50px||||false|false" custom_padding="||||false|false" global_colors_info="{}"]● Immediate tax benefit
● Potential income stream
● Avoids capital gains tax
[/et_pb_toggle][/et_pb_column][et_pb_column type="1_4" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_toggle title="Cons" icon_color="#c8102e" open_icon_color="#cbc4bd" admin_label="CRT Cons" _builder_version="4.25.0" _module_preset="default" body_text_align="left" custom_margin="50px||||false|false" custom_padding="||||false|false" global_colors_info="{}"]● Irrevocable
● Complex setup and administration
● Fees and costs
[/et_pb_toggle][/et_pb_column][/et_pb_row][et_pb_row column_structure="1_2,1_4,1_4" admin_label="Bunching Charitable Contributions" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_column type="1_2" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_heading title="Bunching Charitable Contributions" admin_label="h3: Bunching Charitable Contributions" _builder_version="4.25.0" _module_preset="default" title_level="h3" title_text_align="left" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="Bunching Text" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"]Bunching charitable contributions involves grouping several years' worth of donations into a single year to exceed the standard deduction threshold, allowing for itemization and more significant tax savings in that year.
[/et_pb_text][/et_pb_column][et_pb_column type="1_4" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_toggle title="Pros" icon_color="#c8102e" open_icon_color="#cbc4bd" admin_label="Bunching Pros" _builder_version="4.25.0" _module_preset="default" title_font_size="16px" body_text_align="left" custom_margin="50px||||false|false" custom_padding="||||false|false" global_colors_info="{}"]● Maximizes deductions
● Flexibility in timing of donations
● Simple to implement
[/et_pb_toggle][/et_pb_column][et_pb_column type="1_4" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_toggle title="Cons" icon_color="#c8102e" open_icon_color="#cbc4bd" admin_label="Bunching Cons" _builder_version="4.25.0" _module_preset="default" body_text_align="left" custom_margin="50px||||false|false" custom_padding="||||false|false" global_colors_info="{}"]● Requires careful planning
● May not suit all donors
● Variable charitable support year-to-year
[/et_pb_toggle][/et_pb_column][/et_pb_row][et_pb_row column_structure="1_2,1_4,1_4" admin_label="Donating Appreciated Assets" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_column type="1_2" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_heading title="Donating Appreciated Assets" admin_label="h3: Donating Appreciated Assets" _builder_version="4.25.0" _module_preset="default" title_level="h3" title_text_align="left" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="Assets Text" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"]Donating appreciated assets like stocks, real estate, or alternative assets like jewelry or fine art can provide significant tax benefits. Donors can avoid capital gains taxes and receive a tax deduction for the asset's fair market value. Regardless of asset type, donors will only receive tax benefits when donating to an eligible organization.
[/et_pb_text][/et_pb_column][et_pb_column type="1_4" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_toggle title="Pros" icon_color="#c8102e" open_icon_color="#cbc4bd" admin_label="Assets Pros" _builder_version="4.25.0" _module_preset="default" title_font_size="16px" body_text_align="left" custom_margin="50px||||false|false" custom_padding="||||false|false" global_colors_info="{}"]● Avoids capital gains tax
● Tax deduction for fair market value
● Diversifies charitable contributions
[/et_pb_toggle][/et_pb_column][et_pb_column type="1_4" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_toggle title="Cons" icon_color="#c8102e" open_icon_color="#cbc4bd" admin_label="Assets Cons" _builder_version="4.25.0" _module_preset="default" body_text_align="left" custom_margin="50px||||false|false" custom_padding="||||false|false" global_colors_info="{}"]● Requires valuation of assets
● Potential legal and administrative costs
● Complexity in transferring non-liquid assets
[/et_pb_toggle][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built="1" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_row admin_label="Conclusion" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_column type="4_4" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"][et_pb_heading title="Take Advantage of Advanced Charitable Giving Strategies " admin_label="h2: Take Advantage of Advanced Charitable Giving Strategies" _builder_version="4.25.0" _module_preset="default" title_level="h2" global_colors_info="{}"][/et_pb_heading][et_pb_text admin_label="Conclusion Text" _builder_version="4.25.0" _module_preset="default" global_colors_info="{}"]By utilizing these advanced charitable giving strategies, you can achieve significant tax benefits, enhance your philanthropic impact, and build a lasting legacy. Given the complexity of these strategies, it's essential to partner with an experienced financial firm, like 5280 Associates, to maximize the benefits. Keep in mind the AGI limitations for tax deductions and consult with a financial planner to explore all the available options. To learn more about these strategies or to take advantage of them, reach out to an expert financial planner at 5280 Associates and unlock your financial potential.
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