MAKE THE SEASON COUNT: HOW END-OF-YEAR GIVING BENEFITS YOU AND OTHERS

By ​Kim Stinson, Corporate Controller, EQT Corporation, and PA Women Work Board Member

As the year winds down, it’s a time for reflection, gratitude, and generosity. End-of-year charitable giving offers a unique opportunity to make a lasting impact on causes you care about while also reaping valuable tax benefits. Whether you're donating cash, appreciated assets, or even setting up a donor-advised fund, your contributions can help shape a brighter future for those in need and reduce your taxable income at the same time.

Strategic philanthropic giving can maximize your contributions and transform the holiday season into a time of meaningful change. Let’s make the most of these last few weeks in 2024!
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Here are several methods to consider:

1. Cash Donations: Contributing cash to qualified charitable organizations allows you to deduct the donation amount from your taxable income, up to 60% of your adjusted gross income (AGI). If your donations exceed this limit, you can carry forward the excess deduction for up to five years.

2. Donating Appreciated Assets: By donating long-term appreciated assets, such as stocks or real estate held for more than a year, you can deduct their fair market value and avoid paying capital gains tax on the appreciation. This strategy is particularly beneficial for assets that have significantly increased in value.

3. Donor-Advised Funds (DAFs): Establishing a DAF allows you to make a charitable contribution, receive an immediate tax deduction, and recommend grants to charities over time. This approach provides flexibility in your giving and can be advantageous for tax planning.

4. Qualified Charitable Distributions (QCDs): If you're 73 or older and must take required minimum distributions (RMDs) from your IRA, you can direct up to $105,000 per individual for 2024 to a qualified charity through a QCD. This distribution satisfies your RMD but is not included in your taxable income.

5. Bunching Contributions: If your total itemized deductions are close to the standard deduction, consider "bunching" charitable contributions into one tax year to surpass the standard deduction threshold, allowing you to itemize and maximize your tax benefits.

6. Check Employer Benefits to Maximize Charitable Contributions: Many companies offer workplace giving benefits where they’ll match tax-advantaged charitable contributions to nonprofits. Now is a great time to check your employer’s policies to ensure you maximize your giving.

Before implementing these strategies, consult with your legal, tax or financial professional to ensure they align with your financial goals and comply with current tax laws.

As the calendar turns and a new year approaches, there’s no better time to reflect on the difference you can make through thoughtful giving. Whether your gift supports a local organization, advances global causes, empowers women, or strengthens communities, your generosity will spark meaningful change. Beyond the impact on others, end-of-year giving allows you to take advantage of tax benefits that align with your financial goals.

Let this season of giving be a reminder that every contribution—big or small—can ripple outward in ways you might never imagine. Together, we can close the year with purpose and step into the next one with a shared commitment to making the world a little brighter.

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