As the new year approaches, it’s natural to reflect on the past year’s blessings, find ways to give back, and, as responsible financial citizens, consider the tax advantages of charitable contributions. At Premier Financial, philanthropy is not just a seasonal gesture but a cornerstone of true financial peace of mind.
Why Giving Matters
Philanthropy goes beyond the financial transaction—it’s an investment in the causes and communities we care about. When we give, whether to local hospitals, veteran support services, or educational initiatives, we’re creating ripples of impact. For Premier Financial, giving back isn’t just something we do; it’s part of aligning with our mission of promoting financial and community well-being.
The Practical Side: Giving and Taxes
It’s a good practice to be strategic about your giving. For example, did you know the IRS allows those aged 73 or older to make Qualified Charitable Distributions (QCDs)? Donating required minimum distributions (RMDs) from IRAs to qualified charities can reduce your taxable income, avoid higher Medicare premiums, and even prevent potential Social Security penalties. It’s a win-win situation: your generosity supports the community while optimizing your financial health.
For those not yet 73, strategic giving can still provide benefits, such as deductions, if itemized correctly. However, with increasing deduction thresholds, planning your giving carefully is essential. Talk to your financial advisor or CPA to make the most of your contributions.
Don’t Wait Until the Last Minute
As the year closes, time becomes a precious commodity. Many financial institutions have deadlines well before December 31 for processing charitable donations. Procrastination can lead to missed opportunities, so we recommend starting now. Finalize your donations early to avoid the December 15 rush and give yourself peace of mind.
The Joy of Giving While Living
An emerging trend is the joy of giving during one’s lifetime. Unlike traditional estate planning, giving now allows you to witness the positive impact of your contributions. Whether supporting local health initiatives or helping loved ones with housing or education costs, giving during one’s lifetime can be deeply rewarding.
How to Choose Wisely
With countless charities to choose from, how do you decide where to give? We recommend using online search tools to verify 501(c)(3) status and researching how donations are utilized. Charities with lower administrative costs often direct more funds to their mission, ensuring your generosity has the most significant impact.
Building a Giving Strategy
Giving isn’t just a financial decision; it reflects your values and is a key part of your estate planning. Whether contributing to a cause close to your heart or planning a family gift, aligning your giving with your financial goals ensures peace of mind today and tomorrow.
A Season for Generosity
At Premier Financial, philanthropy is a priority in our community engagement. From matching donations for local causes to supporting healthcare initiatives, we’re committed to touching as many lives as possible. As we give, we hope to inspire others to join us in creating a culture of care and generosity.
This December, as you consider your giving, remember that generosity isn’t just about dollars and cents. It’s about building a legacy of compassion, fostering financial peace of mind, and making a meaningful difference in the lives of others.
Happy holidays and happy giving!