Planning Ahead for Year-End Giving

Blog 2022 YE Giving

As the seasons change and 2023 draws near, you may be searching for a way to help people and organizations in our community through charitable giving. Don’t wait until December to begin your year-end giving planning! Think about the causes you would like to support and your goals before the hustle and bustle begins. When the holiday season arrives, you’ll enjoy time spent and traditions enjoyed with loved ones.

What’s your giving plan?

Grand Rapids Community Foundation offers a wide range of solutions for giving—some of which may even improve your year-end tax situation. You can give assets now, or if this is the time of year that you do an annual review of your estate plan, you might consider creating a charitable bequest or other planned gift. The Community Foundation team or a professional advisor can help you consider giving strategies that are best organized in advance of the new year.

Giving Highlight: Gifts from an IRA

A qualified charitable distribution (QCD) is money that individuals who are 70 ½ or older may direct from their traditional IRA to eligible charitable organizations. QCDs remain a tax-efficient way to give and are sometimes referred to as an “IRA charitable rollover.” Giving through a QCD allows a donor to avoid income tax that would have been due on the amount withdrawn. The amount withdrawn is not only is excluded from gross income on the Federal return, but is also excluded from Michigan income tax because it is not included in Federal adjusted gross income.

Read more about giving through a qualified charitable distribution from an IRA. Alternatively, if you have inherited an IRA from a loved one, contact a professional advisor or member of the Community Foundation team to discuss the benefits of gifting inherited IRA assets to charitable organizations.

Planned Giving Highlight: Establish a lifetime income with a Charitable Gift Annuity

A charitable gift annuity (CGA) is a simple agreement between you and the Community Foundation—in exchange for a gift of cash or appreciated assets, you receive fixed payments for life. Many people consider a CGA as they plan for retirement, to continue giving with the assurances of a reliable source of income. CGA interest/payout rates, which depend on your age and the number of people covered by the annuity, were recently raised for annuities established after July 1, 2022.

If you've been considering a CGA, now may be a good time to talk to your advisor about how it may fit into your overall giving plan. Plus, a CGA or other planned gift grants you membership to the Metz Legacy Society! Read more about planned gifts.

Year-End Giving Dates to Know

Gifts to be credited for 2022 tax returns must be postmarked or given online by December 31. Complex gifts may take longer to process. If you are considering a gift of stock or mutual fund shares, please begin your contribution as soon as possible, as deadlines are earlier in December.

Get started today

The Community Foundation relies on donor partners to create a community where opportunity, prosperity and belonging exists for everyone who calls West Michigan home. If we can support your giving—by answering questions about a specific strategy or connecting you to a professional advisor—please contact our development team at 616.454.1751.