Ending the Year Well

December 1, 2023
Year End Giving | First Liberty Insider

by Austin Waugh • 4 min read

The holiday season is upon us and brings with it many opportunities to give generously to our loved ones and the causes that we hold dear. It also marks the end of another year and prompts additional opportunity to employ some year-end tax-saving strategies. With a little charitable planning, you can trim your income tax bill and make your money work harder for you while benefiting others. Let’s consider some tax-wise charitable planning strategies.

IRA Charitable Rollover – If you are age 72 or older[1], you can rollover up to $100,000 from your IRA to a qualified charity like First Liberty and reduce your income taxes for the year. This strategy is commonly referred to as a qualified charitable distribution (QCD) and may count towards your required minimum distribution (RMD) for the year. Additionally, a QCD can lower the amount of your Social Security benefits that are subject to income tax.

Charitable Trusts – Charitable trusts are a great way to provide income to your children or other beneficiaries while also supporting organizations like First Liberty. A charitable trust is itself a charitable entity and can be funded with almost any asset you have. You receive income tax advantages (plus possible estate tax benefits) with the establishment of the trust and as time passes, the trust distributes income to its beneficiaries and leaves a residual amount to charity.[2]

Gifts of Stock – Another great charitable strategy is gifting stock outright to a charitable organization. By gifting stock, you can avoid capital gains taxes and receive an income tax deduction. All this while benefiting your chosen charity with the full value of your gift. By combining a stock gift with a charitable trust, it is possible to receive similar tax advantages of an outright gift. Additionally, you can diversify the assets inside the trust, reduce portfolio risk, and thereby achieve better risk-adjusted income for beneficiaries.

While you take time to enjoy the many blessings that this holiday season has to offer, don’t miss the opportunity to take advantage of wise end-of-year charitable planning. By visiting our Legacy Giving site, you can learn more about the above strategies above, as well as discover a wealth of information to help satisfy your philanthropic intent.

You have worked hard to build a financial legacy to leave to your loved ones. Why not consider leaving them a legacy of religious liberty as well? If you’d like to stay informed of up-to-date, helpful information on topics that impact your quality of life, your finances and your legacy, sign up for our Legacy Giving eNewsletter.

If we can provide you with any additional information about these year-end strategies, please contact Mr. Austin Waugh at (972) 941-4444.

Disclosure: First Liberty Institute does not provide tax or legal advice. Individuals should always check with their tax or legal advisor before engaging in any transaction involving tax-advantaged planning strategies or investments. Comments herein are for educational purposes only.

[1] SECURE 2.0 increased the required minimum distribution age to 73 as of January 1, 2023. However, those who turned 72 in 2022 would still be required to take their first RMD by April 1, 2023.

[2] This example discusses a common charitable remainder trust. Charitable lead trusts are another useful strategy.

Legacy Giving | First Liberty Insider

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