2019 Year-End Charitable Giving

Whether you are philanthropically inclined or just looking to reduce your income tax bill, making a 2019 charitable contribution may prove beneficial. Even though the charitable deduction was not eliminated by the 2017 Tax Cuts and Jobs Act, a nearly doubled standard deduction reduced the number of taxpayers who choose to itemize.

So, what should you give away? Contributions of appreciated publicly traded securities held for more than one year provide the greatest tax benefit. First, you receive an income tax deduction for the fair market value of the security, limited to 30% of your adjusted gross income (AGI). Any excess can be carried over for up to five years. Second, you avoid the tax on the built-in gain. The lower the basis, the greater the tax benefit on the unrealized gain.

You can also make a cash gift, which is currently deductible up to 60% of AGI. Someone with taxable income over $510,000 who makes a charitable gift would likely receive a benefit in 2019 at a 37% marginal rate. Similarly, a gift this year may benefit a taxpayer who is subject to the AMT at 28% if future income consisting solely of qualified dividends and capital gains would be taxed at 20%. Finally, if property other than cash or publicly traded securities is contributed, don’t forget about I.R.S. substantiation requirements.

Source: iStock 2019
Beyond the tax incentive, we know families feel fortunate to be able to give back. Unfortunately, families sometimes struggle to come together to decide to what causes and organizations they will give. How do you choose between important causes, and how do you know your gift will truly make the impact you intend? With millions of organizations to choose from and regular solicitation requests, it can be easy to lose control of our own giving.

That’s why we’ve included Goodnation in our Life & Wealth Network. Goodnation is the first free philanthropic advising platform and service that connects you with high-performing nonprofits that share your values and interests.

Goodnation sources and vets the most impactful nonprofits in over 30 cause areas and works closely with each donor to personally recommend organizations. On their platform, you can dive into each organization’s work, explore additional options, build your giving portfolio and process your gifts, all in one place. Your personal Philanthropy Advisor guides you, shares impact updates, and facilitates site visits and other engagement opportunities. Goodnation’s services are free of charge for donors, so that you can focus on maximizing your impact.

Watch our videos with Goodnation founder Rob Hansen to learn more.

If you’re ready to learn how to maximize your giving during year-end and beyond, email us at jpiasecki@conwaywealth.com, or start the giving survey here with code CONWAY.

Disclaimer: Conway Wealth Group does not provide tax or legal advice. Clients should make all decisions regarding the tax and legal implications of their investments and plans after consultation with their independent tax or legal advisors. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state or local taxes. 12172019-865