As the year draws to a close, it's a great time to review your financial plans and consider the impact of charitable giving. Donating appreciated assets, such as stocks or mutual funds, can offer tax advantages while supporting causes you care about.
If you’re age 70½ or older, a Qualified Charitable Distribution (QCD) from your IRA may satisfy your required minimum distribution and reduce taxable income. Be sure to make your contributions by December 31 to count for this tax year. Consult your financial advisor or tax professional to ensure your giving strategy aligns with your goals.
Also, consider gifting appreciated securities—such as long-held stock positions—to qualified charities. This strategy can:
- Avoid capital gains taxes
- Provide a charitable deduction for the full market value
- Help rebalance the portfolio tax-efficiently
If you're considering charitable giving, United Way of Northeastern Minnesota is a fantastic local organization making a meaningful difference in our community. They support programs in education, health, and financial stability across the Iron Range. Gifting appreciated securities to United Way is a powerful way to give back while optimizing your financial plan.
Jack Furlong, CFP®, APMA, BFA, is a Certified Financial Planner at Ameriprise Financial Services in Hibbing and Virginia and has served on UWNEMN's Board of Directors for four years.