Year-End Giving: Charitable contributions during the holiday season
By Dave McGowan
In the last issue, I reported that more than $557 billion was estimated to be contributed to charitable organizations in 2023. Do you know that much of that giving was contributed in the last quarter of the year?
Why do people give then? Well, the December 31 deadline to record gifts for that year is looming and because many people are motivated to give during the holiday season. It’s also when many people receive their bonuses.
As much as 1/3 of all giving happens in December, and 10% of all giving is done in the last few days of the year. That can make complex gifts difficult and stressful to complete. The sooner you can get started, the better.
It’s also less challenging for not-for-profits to receive, deposit, and acknowledge gifts before the end of the year when many of their employees take time off for the holidays. I have worked until 3:00 p.m. on many Christmas Eve and New Year’s Eve!
As you plan your year-end giving, remember cash isn’t always king. Appreciated property reigns supreme during lifetime giving. This strategy allows you to receive a tax deduction for the property’s market value while avoiding capital gains tax.
Gifts of publicly traded stock, privately held stock, and mutual fund shares are among the most common. Real estate with a low basis for valuation is also a great asset to give; however, the due diligence required by most not-for-profit gift acceptance policies is extensive and requires more time to complete.
Other great gifts include Qualified Charitable Distributions from IRAs for those 70 1/2 and older. The maximum in 2024 is $105,000 per spouse with separate IRAs. Distributions count toward RMDs.
Need help deciding which area organizations to support? Visit DuPageFoundation.com. The Foundation’s grantees are listed alphabetically as well as by category: Animal Welfare, Arts & Culture, Education, Environment, and Health & Human Services. They also maintain a donor interest worksheet that drills that down even further. As always, consult with your advisors for the most tax-efficient way to make your charitable contributions.
About the author: Dave McGowan has been a Chicago-area not-for-profit executive since November 1981. He is a certified fundraising executive who retired from DuPage Foundation after 25 years in December 2022 before starting a consulting practice serving donors, their advisors, and the not-for-profits they support. Dave can be reached at dave@davemcgowanconsulting.com.
