The holiday season, a time synonymous with generosity and giving, presents a unique opportunity for thoughtful charitable contributions. As an independent advisor with Raymond James and an Accredited Asset Management Specialist (AAMS) at Pendle Hill Advisors, I am dedicated to guiding clients on how to make their charitable efforts impactful and tax-efficient, particularly as we approach the end of the tax year.
The Value of Charitable Giving in the Holiday Season
This festive season is an ideal period for considering how our generosity can extend beyond our immediate circle. “Strategically planning charitable contributions before the year’s end not only benefits the recipients but can also provide you with significant tax advantages,” I counsel my clients.
Effective Charitable Giving Strategies for the Holidays
1. Leveraging Tax Benefits: Making donations to qualified charities before year-end can reduce your taxable income, offering immediate tax relief.
2. Choosing Between Itemizing and Standard Deductions: It’s crucial in the current tax landscape to determine whether itemizing deductions is more advantageous than opting for the standard deduction.
3. Donating Appreciated Assets: Gifting stocks or other appreciated assets is often a wise move, yielding a full market value deduction and circumventing capital gains taxes.
Charitable Remainder Trusts for Substantial Philanthropic Projects
As an independent advisor, I often recommend Charitable Remainder Trusts (CRTs) to clients aiming to make significant charitable contributions. “CRTs are not just about tax benefits; they’re a powerful means to commit a substantial amount towards impactful charitable projects, with the bonus of a current year tax deduction,” I explain.
Benefits of Charitable Remainder Trusts
-Supporting Major Charitable Efforts: CRTs enable you to allocate a significant sum towards future large-scale charitable initiatives.
-Immediate Tax Deduction: One of the most compelling benefits is the immediate tax deduction, which can help reduce your current year’s tax burden.
Philanthropic Planning at Pendle Hill Advisors
At Pendle Hill Advisors, we pride ourselves on seamlessly integrating charitable giving into our clients’ broader financial strategies. “Balancing your philanthropic aspirations with astute financial planning is essential for maximizing the impact of your generosity,” is a guiding principle of our practice.
Closing Thoughts on Year-End Charitable Planning
As the year concludes, it’s an important moment to consider your charitable goals. Whether through direct donations or structured vehicles like CRTs, thoughtful planning can greatly enhance the efficacy and satisfaction of your charitable endeavors.
Kent Pendleton, AAMS®
Financial Advisor, RJFS
Pendle Hill Advisors LLC
14375 Liberty St, Ste 109 | Montgomery, TX 77356
[email protected] | www.raymondjames.com/pendlehilladvisors
Any opinions are those of Kent Pendleton and not necessarily those of Raymond James. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Please be aware that there may be substantial fees, charges and costs associated with establishing a Charitable Remainder Trust. Donors are urged to consult their attorneys, accountants or tax advisors with respect to questions relating to the deductibility of various types of contributions. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.
While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.
Securities offered through Raymond James Financial Services, Inc., member FINRA / SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc.. Pendle Hill Advisors LLC is not a registered broker/dealer and is independent of Raymond James Financial Services.