You are the owner of this article.

Charitable giving can help causes important to you — The Reich Report

According to the Women Give 2017 study, donors, especially women, who give 2% or more of their income, are happier than those who don’t. Many times, other than simply writing a check, people don’t know how to give. First, I help them identify a charity or simply the cause that they want to support. Many people have a particular area that they want to help in but don’t always know which organization(s) support that cause.

Since every person has different needs and different desires when it comes to giving, next I help them determine the method that is appropriate. Here’s a list of several ways that you can give.

1. Qualified charitable distribution (QCD) — In my opinion, one of the best ways to give is to gift your IRA or your required minimum distribution (RMD) from your IRA. You can gift up to $100,000 per year this way. Also, you must be age 70½, and you cannot gift funds from an employer-sponsored plan.

2. Life insurance — You can give a current or new policy. This option allows you to give more than you otherwise might. Gifting a policy you no longer need or want is a great option. The charity can keep and maintain the policy or possibly sell it. Many times it can be sold for much more than the cash value, and you may get a much larger deduction if they do. Consult your tax adviser!

3. Charitable lead trust (CLT) — With a charitable lead trust, the charity gets all the income from the trust, and upon death, your beneficiaries get the trust assets.

4. Charitable remainder trust (CRT) — This is the opposite of a CLT. You get the income, and the charity receives the assets upon death. This may be good for people who need the income and deductions to possibly reduce taxes but have no heirs.

5. Charitable gift annuity — This gives you a guaranteed income for life via an annuity and a portion of it goes to the charity. The balance goes only to that charity unlike a CRT, etc. which can fund multiple charities.

6. Real estate/collectibles — You gift the property (usually highly appreciated), then the charity sells it. Caution, not all charities have the resources to handle these transactions, so discuss it with them first. Regarding collectibles, they must be highly marketable.

7. Appreciated stock — You gift your stock to a charity, and they can sell it tax free. You get a deduction without paying the taxes due if you were to sell it yourself.

8. Donor advised funds — The fund is managed by the organization, but you direct which investments within the funds you want. They do all the work (for a fee!). Your deduction is limited to 60% of your adjusted gross income (AGI) for cash donations and 30% on donated securities.

9. Pooled income fund — This is similar to a DAF, but you have no investment control. There is a limited deduction based on your life expectancy and the fund’s performance.

10. Private foundation — You are the DAF. The deduction is limited to 30% of your AGI for cash donations and 20% for securities. This is designed for ongoing family giving.

As you can see there are many ways to give and make a difference for a cause that is important to you!

T. Eric Reich, CIMA, CFP, CLU, ChFC is president and founder of Reich Asset Management and can be reached at 609-486-5073 or eric@reichassetmanagement.com.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Reich Asset Management, LLC is not affiliated with Kestra IS or Kestra AS. The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.

Load comments

HOW TO SUBMIT TO OUR WEEKLIES

HOW TO SUBMIT TO OUR WEEKLIES

Submit all material to current@shorenewstoday.com.

COMMUNITY NEWS AND ANNOUNCEMENTS

  • Include the complete name of the group, school or other organization; where it’s located and what area it serves; the name and title, if applicable, of the person submitting the information; a person to contact with questions and whether the contact is only for us or for the public as well.
  • Information should be formatted as little as possible, without tabs or tables.
  • Photos should be high-resolution and emailed as an attachment. Include the names of the people in the photos and, if applicable, any relevant titles or relationships. Indicate how to determine who is who, such as “front row, from left.”

TRAVELS WITH …

  • Take a picture when you travel of you or your group with one of our weeklies. Send us the picture with names, hometowns and the name of the place you visited.

LETTERS TO THE EDITOR

  • Letters must be fewer than 400 words and received by 9 a.m. Monday for publication the same week.

EVENT AND TRIP LISTINGS

  • Information to be included in event or trip listings must be submitted online at pressofac.com/calendar. Scroll down to where it says “Submit an event.” Click on “Go to Form.”
  • You are required to sign in using a username and password. If you have previously made an account, log in using the username and password you created. If you have NOT previously made an account with us, click on “Register Here” (under the Sign In button).
  • Once you have created a username and password, you will be taken to the calendar form. Fill out the form with the relevant information. Please remember that less is best for calendar listings. Note: If you include a website, it must be the full address. For example, http://www.pressofac.com, not pressofac.com.