December 16, 2024 By Beth Porter, Shared with permission by Emily Roberson, Executive Director of the Youth Garden Project in Moab, Utah
As we quickly approach the end of the year, I know many of you will be receiving requests for donations from local, regional, and national nonprofits, or seeing more fundraising campaigns on your social media feeds. Many of you have already given, I suspect, and I send you thanks on behalf of my nonprofit friends. If you haven’t yet made your year-end donations, I’d like to encourage you to consider setting aside some money to support causes that pull at your heartstrings, if you are able. I completely understand that not everybody is in the position to donate. Wherever you stand on your 2024 charitable giving, I’ve listed some ideas below that could help make your generosity go even further.
1. Consider Gifting Stock: When stocks are donated directly to nonprofit organizations, they typically avoid capital gains tax. This means you can set aside more for the causes you care about.
2. Release Donor-Advised Funds Sooner: If you have money in a Donor- Advised Fund (DAF), consider releasing those funds sooner rather than later. Your money is already earmarked for charity, and many nonprofits have urgent needs. Why wait?
3. Qualified Charitable Distributions: Qualified Charitable Distributions (QCDs) allow individuals aged 70½ or older to donate directly from their IRAs to eligible charities, bypassing your need to pay income taxes on the withdrawal. If you are fortunate enough to not need your entire Required Minimum Distribution, this can be an advantageous way to plan your charitable giving.
4. Plan Your Giving: The end of the year can be a busy (and expensive!) time with family gatherings, festive activities, and holiday travel. If this isn’t the best time for you to make a charitable contribution, consider setting a reminder to review your giving goals at a different time of year. Many nonprofits also appreciate smaller, recurring, monthly gifts.
5. Ask About Corporate Gift Matching: Many U.S. companies are increasing their gift-matching programs, where they match, dollar-for-dollar, the money you donate to a 501(c)3. If you work remotely for a large company, this might be particularly relevant. Imagine turning $100 into $200 for a local cause just by submitting a form to your employer!
6. Cover Transaction Fees: When giving online, many nonprofits offer the option to cover credit card transaction fees. These fees can add up, so if you can, consider covering them to ensure your full intended gift reaches the nonprofit.
I know everyone wants their donations to be used effectively, addressing critical issues and providing much-needed services. These practices can help you better meet these intentions for your charitable gifts. Wishing everybody a warm and bright holiday season!
Beth Porter is a local consultant with 35+ years of experience in nonprofit management. She partners with local nonprofit leaders on a variety of strategic projects bringing a fresh perspective, calm energy, and lots of tools. Contact her at beth@bcpnonprofitconsulting.com to learn more.