Broker Check
The Spirit of Giving: Remembering Others as the Year Closes…

The Spirit of Giving: Remembering Others as the Year Closes…

December 22, 2023

The end of a year and the beginning of a new one can be a time for contemplation and planning. It can also be a time for gratitude and generosity. If life has been good to you, if your hard work and discipline have been rewarded, is there an organization or charity you would like to recognize? 

According to Charity Navigator, a trusted and well-known non-profit evaluator, charities receive an average of 41% of their contributions in the last few weeks of the year. Why is that the case, and why should you consider making a year-end gift?

Tis The Season

The holiday season of Hanukkah and Christmas is filled with messages of gratitude, generosity, and a spirit of helping others less fortunate. The messages of love and light and redemption inspire us to share beyond buying gifts for those close to us, but also by directing donations to our favorite charities as well. And doing so provides a wonderful opportunity to demonstrate to our children and grandchildren compassion for others. Having them help you choose a charity can be a bonding experience and establish a new tradition.

Tax Benefits

Year-end giving can also serve a practical purpose as well. As the end of a tax year approaches, you will likely start to focus on your personal income tax planning. If you itemize deductions, a gift to a qualified charitable organization may allow you to claim a charitable contribution deduction against their taxable income.  If a gift is deductible, it may reduce your taxes paid based on the income tax bracket you are in. 

For example, an individual in the 33% tax bracket would enjoy a $33 tax savings on a $100 charitable contribution. It is important to note that donations can be subject to certain limitations and restrictions. Your One Financial Services advisor will be pleased to assist you with these decisions.

It Was a Very Good Year

As a famous song goes, it may have been a very good year. For instance, a year-end bonus may play a role in the decision to make year-end charitable contributions. Appreciated stock can also present an opportunity to share income while receiving tax benefits. Donating appreciated property, such as shares of stock, to a qualified charitable organization may allow you to take a deduction on your income taxes for the full fair market value of the donated assets.

No matter the season or the reason, our One Financial Services team of experienced professionals is here to guide you toward a secure future and a rewarding legacy for you and your family.

With all good wishes for a Happy, Prosperous New Year.