Carly Greenfield, Senior Manager, Business Development, and Eric Joranson, CAP®, Senior Manager, Charitable Strategies Group for Schwab CharitableTM explain how advisors can assist clients with both tax savings and charitable giving strategies.
The majority of affluent households in the U.S. give generously to charity.* Advisors may be able to extend their client relationships to the next generation by having planning discussions about family philanthropy.
Schwab Charitable’s recent article, 12 Tax-Smart Charitable Giving Tips for 2023, includes strategies to increase donor impact and reduce taxable income. Beyond the charitable tax deduction available for taxpayers itemizing deductions, Schwab Charitable offers a number of tips that may substantially reduce tax burdens and help donors maximize their charitable impact. For example, gifts of appreciated non-cash assets can provide a tax deduction for the fair market value of the assets while also potentially eliminating the capital gains taxes donors would incur if the assets were sold and the cash proceeds donated to the charitable cause.
When donors have depreciated securities, a tax-loss harvesting strategy may be considered. By identifying and selling assets held at a loss, donors can use the loss to offset gains and then donate the sale proceeds to charity.
Another strategy is the combination of non-taxable qualified charitable distributions (QCDs) with annual required minimum distributions (RMDs) from IRAs. That is, donating assets from an IRA directly to a charity may reduce taxable income for the year as well as satisfy all or part of that year’s RMD.
In the midst of tax season, some of your clients might be reflecting on how much they owe in taxes or anticipating a large taxable event in 2023. Join this webcast to hear timely tax-smart charitable strategies to help your clients potentially reduce their taxes and increase their giving power. Two specialists from Schwab CharitableTM will share tax-effective ways to support your clients’ philanthropic goals and connect with extended family members in a meaningful way.
Topics will include:
- Charitable trends and the current giving environment
- Tax-efficient charitable giving strategies for family philanthropy
- How to help your clients create a strategic giving plan to maximize their charitable impact
- New philanthropic resources to help you develop deeper client relationships
Accepted for 1 CFP® / IWI / CFA CE Credit
Schwab CharitableTM is the name used for the combined programs and services of Schwab Charitable FundTM, an independent nonprofit organization. Schwab Charitable Fund has entered into service agreements with certain affiliates of The Charles Schwab Corporation.
Schwab Charitable is recognized as a tax-exempt public charity as described in Sections 501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code. Contributions made to Schwab Charitable are considered an irrevocable gift and are not refundable. Please be aware that Schwab Charitable has exclusive legal control over the assets you have contributed. Although every effort has been made to ensure that the information provided is correct, Schwab Charitable cannot guarantee its accuracy. This information is not provided to the IRS. The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.
Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.
This information does not constitute and is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, Schwab Charitable recommends consultation with a qualified tax advisor, CPA, Financial Planner or Investment Manager.
A donor’s ability to claim itemized deductions is subject to a variety of limitations depending on the donor’s specific tax situation. Consult your tax advisor for more information.
Investing involves risk including loss of principal.
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