by Jody Dilday, Philanthropic Advisor
The end of 2024 may have been hectic for you and your clients, but now is the perfect time to help families start planning their charitable giving strategies for 2025. While year-end giving often feels urgent, planning early in the year offers even greater advantages.
Here are the benefits of adopting a year-long charitable giving strategy:
- Supporting Nonprofits Year-Round: By giving consistently throughout the year, clients can help nonprofits maintain steady budgets, ensuring they can serve their communities effectively.
- Maximizing Employer Matching Gifts: Encourage clients to take advantage of matching gift programs early in the year, when funds are available, and paperwork can be processed smoothly.
- Improving Cash Flow Predictability: A proactive giving plan ensures clients can support their favorite causes without last-minute stress. Consider setting up automatic contributions to Donor Advised Funds or similar funds through the Community Foundation to formalize this process.
- Becoming Informed Donors: Early planning allows clients to leverage the Community Foundation’s expertise and resources, making their giving more impactful.
- Engaging Family Members: With more time, clients can involve children and grandchildren in their charitable giving and tax-planning discussions, creating valuable learning opportunities for the entire family.
- Avoiding Year-End QCD Rush: If clients are over 70½, executing a Qualified Charitable Distribution (QCD) from their IRA in the first quarter can simplify the process and support eligible charities, such as unrestricted or field-of-interest funds at the Community Foundation.
- Exploring Complex Giving Options: Early planning provides ample time to consider sophisticated strategies, such as gifts of closely-held business interests or charitable remainder trusts, which can deliver significant tax benefits while meeting charitable goals.
As always, the Community Foundation is here to support you. Contact our team to learn how your clients can maximize their impact, take advantage of tax benefits, and avoid the stress of year-end giving. By planning ahead, everyone wins.