Associated | Key Considerations for Year-End Tax Planning

Discussions between advisors and clients about philanthropy are on the rise, finds the U.S. Trust Study of the Philanthropic Conversation, as clients report advisors to be a valuable source of information, second only to their spouse or partner. With year-end fast approaching, make sure you touch base with your advisors about ways to lower your 2024 tax burden and make a difference in the community. Now is the perfect time to consider tax-smart strategies for your charitable giving. Our team of experts have compiled some key tips to maximize your charitable impact while making the most of tax advantages.

Use Appreciated Assets to Make a Charitable Gift in 2024.

Particularly this December as the stock market has risen so dramatically, gift of appreciated assets (stock) is the most efficient way to make your gift to The Associated. You will not only get a deduction for the full value of the asset, but also avoid the capital gains tax that would apply if you sold the stock yourself. When The Associated sells the donated shares, it pays no capital gains tax, so the full value of the contribution can be put to work for charitable purposes.

Consider Donating to a Donor Advised Fund This Year for Maximum Flexibility.

If A donor advised fund (DAF) is a simple and tax-efficient way to manage your philanthropy, allowing you to recommend grants to charities on your own timeline. DAFs can be started by an individual or family with an initial gift of $5,000 or more. When you establish a fund with The Associated, you always have a trusted partner in your philanthropy. Open a new donor advised fund with The Associated before December 31, 2024, and we will give you up to $1,000 to give away to a charity of your choice* This offer is available to the first 50 donor advised funds opened before 12/31/24.

Make a Charitable Gift from Your IRA.

For people who must take minimum distributions from their IRAs, this is an especially beneficial way to reduce your taxable income, even if you use the standard deduction and do not claim itemized deductions. It permits the transfer of up to $105,000 this year ($108,000 in 2025) from an IRA to charity, free of any income tax. These IRA gifts help satisfy the IRA required minimum distribution (RMD), making less of your mandatory withdrawal taxable.

Make a gift from your IRA and receive income for life.

You may now make a one-time contribution of up to $53,000 ($54,000 in 2025) for a Charitable Gift Annuity. Rates are as high as 10.1% for annuitants aged 90 and older. Contact us to find out your rate.

Check with your tax advisor to find out if any of the above strategies would work for you. As always, The Associated’s Planned Giving and Endowment professionals remain ready to work with you and your advisors on how to incorporate charitable planning into your estate plans and how to help maximize the financial and charitable benefits of any such planning strategies available to you. For more information, contact Michael Friedman at mfriedman@associated.org or 410-369-9233, or Jackie Yahr at jyahr@associated.org or 410-369-9248.

*Eligible grants for the new DAF incentive include: The Associated, any of its agencies and programs, Baltimore synagogues and day schools and not-for-profits whose mission is to support Israel.

This article is for informational purposes only and should not be construed as legal, tax or financial advice. When considering gift planning strategies, you should always consult with your own legal and tax advisors.