With Thanksgiving freshly in the rearview mirror, our inboxes face a barrage of advertisements for a different kind of “holiday”. There’s Black Friday, for the boldest deal seekers; Small Business Saturday, for those looking to shop local; and after a brief respite on Sunday, there’s Cyber Monday for those well-versed in which companies will and won’t ship to Alaska.
Not to be overlooked this year is Giving Tuesday, a movement celebrating its 10th anniversary of encouraging people to do good for others and their communities on the Tuesday after Thanksgiving. As Alaskans, we are lucky to be served by a wide variety of local non-profits that advocate for everything from public lands to food assistance to animal rescue. Giving Tuesday is a great opportunity to consider a gift to your favorite charity as part of your holiday shopping routine.
Qualified Charitable Distributions (QCDs) can be a great gifting strategy for those 70 ½ or older who are considering a donation to a qualified 501(c)(3) organization. When funds are distributed directly from an IRA to a qualified charity, donations summing up to $100,000 per person per year are excluded from taxable income. If you are Required Minimum Distribution (RMD) age, you can satisfy your RMD tax-free with a QCD strategy. While waiting until the last minute might work with gift shopping, don’t delay your QCDs until the end of December: the receiving charity must cash the donation check before 12/31/2022 for the contribution to qualify as a QCD.
If there’s no room in your budget for financial giving this year, consider volunteering your time for a cause that is important to you, or challenge yourself to finally tackle that decluttering project and donate used furniture, books, or clothes to those in need. We all have a lot to be thankful for, and gratitude is best when shared. If you’re interested in how charitable giving strategies might fit into your financial plan, our team is here to help.
Associate Financial Advisor