Through charitable giving, you can support causes or organizations you believe in and lock in tax
benefits simultaneously. Whether you’re new to charitable giving or a veteran, there are several strategies you
should keep in mind. The giving methods you choose, what you give, and when you give can help you maximize your
impact and minimize your tax burden. Here are four charitable giving strategies to consider before making your gift.

Non-cash charitable contributions

Contrary to popular belief, cash is not the only way to give back. Instead of cash, you might want
to consider taking advantage of donating appreciated stock or assets that you’ve held for more than a year. Through
this strategy, you’ll be able to save on capital gains taxes.

Another option is to name a charity as your life insurance policy beneficiary. Note that you can
change beneficiaries if you are the owner of the policy. In addition, you can donate goods that can help an
organization. If you donate goods, you can ask for a tax deduction form, as long as the goods are in good or better
condition.

Qualified Charitable Distributions (QCDs)

If you’re 70 1/2 or older, you can use a QCD to donate directly from your IRA to the charity of
your choice. While the gift amount won’t qualify for a charitable deduction, it won’t be considered taxable income
either. This strategy allows you to deduct the amount transferred to the charity from your taxable income. In
addition to reducing your taxable income, a QCD might be helpful if you won’t reach the level of itemized deductions
to exceed the standard deduction amount but would still like to make charitable gifts.

Donor-Advised Funds (DAFs)

You can donate cash or other assets to a charitable investment account and receive a tax deduction
immediately with a DAF. Since a DAF will grow tax-free, you may choose to distribute funds over time to
organizations and causes that are important to you. If you time your contributions to coincide with higher-income
years, you’ll enjoy a more significant tax deduction.

Bunch your donations

Bunching or concentrating your donations in one year instead of skipping one or several years is a
great way to make the most out of potential tax deductions. This option may make the most sense for your situation
if your total itemized deductions for a single year fall below the standard deduction. By making charitable
contributions for several years at one time, the total of your itemized deductions can exceed the standard deduction
and offer some tax benefits.

Consult your financial professional

Your team at Planned Financial Services can work with you to help you design a charitable giving
strategy. Together we can review your financial situation and help you work towards meeting your desired goals.
Contact us today to get started at 440.740.0130.

Important Disclosures

Investment advice offered through Planned Financial Services, a Registered Investment
Advisor.

Information provided is general and educational in nature and should not be construed as legal or
tax advice. Planned Financial Services and its licensed representatives do not provide legal or tax advice. Content
provided relates to taxation at the federal level only, and availability of certain federal income tax deductions
may depend on whether you itemize deductions. Rules and regulations regarding tax deductions for charitable giving
vary at the state level, and laws of a specific state or laws relevant to a particular situation may affect the
applicability, accuracy, or completeness of the information provided. Charitable contributions of capital gain
property held for more than one year are usually deductible at fair market value. Deductions for capital gain
property held for one year or less are usually limited to cost basis. Consult an attorney or tax advisor regarding
your specific legal or tax situation.

All information is believed to be from reliable sources; however Planned Financial Services makes
no representation as to its completeness or accuracy.

This article was prepared by Fresh Finance.

Tracking # 1-05339454

Sources:

https://money.usnews.com/financial-advisors/articles/strategies-for-charity-minded-clients

https://www.forbes.com/advisor/investing/donate-stock/