As you help your clients prepare for the end of the year, it’s a great time to assess their charitable giving plans. We can help ensure your clients are making the most of what they have been given and realize potential tax efficiencies. Below, we’ve put together possible ways you can help your clients:
Checks/Cash: Gifts must be postmarked on or before Friday, Dec. 31, 2021. Thrivent Charitable encourages checks to be sent via USPS to ensure that they are recognized in 2021. Please note: The IRS does not permit the 2021 postmark from an alternate private delivery service (e.g., UPS or FedEx). Checks sent via one of these services will be dated based on the date checks are received at Thrivent Charitable.
Appreciated securities: Giving long-term appreciated securities to a donor-advised fund has several benefits, including possible tax savings, potentially greater tax deduction and―most important―greater support to charities. Gifts of securities must be initiated by Friday, Dec. 10, 2021, to ensure arrival in Thrivent Charitable’s brokerage account before year-end. While most stocks can be transferred within a week, certain stocks can take two to six additional weeks (e.g., Computershare, EQ Shareowner Services).
Real Estate: Real estate gifts must be completed by Friday, Dec. 31, 2021. Please contact Thrivent Charitable no later than Wednesday, Dec. 1, 2021 to begin the due diligence process. You can also refer to our Real Estate Questionnaire to help get you started. Real estate gifts for 2021 will be executed on a best-efforts basis.
Bundling Gifts: The SECURE Act made it harder for people to itemize their donations. Because the standard deduction is now $25,100 for jointly filing households and $12,550 for individuals, it’s far less likely that your donations can offer the same tax advantage. You can help your clients work around this challenge by bundling two or three years of donations into a donor-advised fund this year (2021). That amount, plus this year’s total deductions, could help your clients meet the standard deduction threshold for 2021. It will also allow them to continue their charitable giving to the causes and charities that matter most to them.
Roth conversion strategies: By making a charitable gift at the time of a Roth IRA conversion, your clients can offset tax liabilities associated with the conversion. By making a gift to a donor-advised fund, your clients can realize the potential tax savings in 2021, and then give to the causes that matter to them at a time of their choosing.
If your clients are considering a year-end charitable gift, be sure they make them in time for a 2021 charitable income tax deduction. We’ve updated our year-end giving deadlines to help you better plan with your clients.
As always, we are here to partner with you as you help your clients create their charitable plans. Our team of charitable gift planners has deep charitable expertise to expand your clients' options and help meet their giving goals. Feel free to contact us at email@example.com or 800-365-4172.