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For more than 45 years, Austin Community Foundation has helped community members make the year-end giving season easy and joyful. The end of the calendar year is often when donors think strategically about how to maximize the impact of their charitable dollars, while minimizing their tax burden. To support your end-of-year giving in being tax-wise and making a difference, here are ten tips from ACF below.
- Donate appreciated stock. If you have stocks or other publicly traded securities that are worth more than what you paid for them, donating these to charity at the end of the year removes your tax liability from the stock sale and is a cost-efficient donation. Stock transfer timelines can vary by provider, but must be received by December 31. (For assistance with a stock gift, contact the team or click here for instructions.)
- “Bundle up” your giving through a Donor Advised Fund (DAF). A DAF is a popular charitable giving vehicle allowing for a tax deduction at the time it’s opened or added to. Then, you can spread our grants to the causes and nonprofits of your choosing throughout the year(s). Setting up a DAF is easy, and once it’s opened, ACF can take a variety of complex gift types. Learn more about Donor Advised Funds at ACF in our brochure.
- Give with your IRA distribution (and skip the taxes!). Making a Qualified Charitable Distribution (QCD) from your IRA is an easy way to donate. A QCD is an above-the-line tax deduction that can satisfy your required minimum distribution. If you’re 70 1/2 or older, you can give money from your IRA straight to charity – up to $105,000 each year. If you’re 73 or older, this giving counts toward the amount you’re required to take out of your IRA each year. Plus, you won’t pay any taxes on the money you give. You can easily support the charity of your choice or any fund at ACF (except a DAF). Think of it as a way to make your retirement savings do more good while saving on taxes at the same time.
- Join other likeminded donors in Central Texas by making a gift. ACF works to close the racial and gender wealth gap while increasing opportunities for economic mobility and wealth-building, particularly for women and communities of color, by investing in long-term solutions to support the critical and evolving needs of Central Texans. It’s a great way to make a difference in a data-driven, community-led initiative.
- Give a gift in someone’s honor or memory. Making a charitable gift in honor or memory of a loved one extends their positive impact on the work while supporting the causes they cared about. It’s a beautiful way to transform grief or gratitude into action that helps others.
- Invest in the Housing Accelerator Loan Fund to continuously recycle your charitable dollars to tackle housing affordability in our region. The Housing Accelerator, a program of Austin Community Foundation, combines research, collaboration and philanthropic resources to accelerate access to affordable housing in Central Texas. We focus on the production of affordable housing across a spectrum of income levels by lending fast, flexible capital to propel projects forward, all while recycling dollars over and over to maximize impact.
- Name a charitable organization as a beneficiary in your will. Check off something on your to-do list related to planning your legacy! If now isn’t the best time to make a donation, naming a charitable organization such as ACF as one of your beneficiaries is a great way to ensure that your future gift helps others.
- Be mindful of your timing and deadlines! For charitable contributions to count towards next tax season, they must be made by December 31. Learn more about our end-of-year deadlines on our blog.
- Contact your professional advisors to help clarify your best giving strategy. It is always important to consult your financial advisor, accountant and/or estate attorney to fully understand the ramifications of year-end-giving as it relates to your unique situation.
- Consult with philanthropy experts at Austin Community Foundation. We’re here to help year-round! Our expert guidance is available in any season, to support you in identifying the best opportunities to accomplish your charitable goals. Explore our website or reach out to learn more about how ACF partners with local philanthropists who want to be more strategic and impactful with their giving.
We’re proud to be your trusted partner in philanthropy. Thank you for looking to ACF to make your charitable giving local, personal, and meaningful.
Rebekah Anthony is Director of Donor Relations at Austin Community Foundation. If you have any questions, please reach out to our Donor Relations team at heretohelp@austincf.org.