- Use appreciated assets to make a charitable gift in 2023. As in previous years, gifts of appreciated assets (stock) remain a best practice. Such gifts not only provide a deduction to the donor but also avoid the capital gains tax.
- Consider donating to a Donor-Advised Fund (DAF) this year for maximum flexibility. If you are considering making a significant donation to charity over time but want a deduction today, consider adding funds to an existing DAF or opening a new DAF. Donating appreciated property can be especially beneficial because you may be able to eliminate capital gains tax on these contributed assets. The Federation’s Jewish Community Foundation operates donor-advised funds and would be happy to assist.
- Look into an IRA charitable rollover. The IRA charitable rollover is an attractive option because it can help satisfy the minimum distribution requirement without incurring income tax, even if you don’t itemize your deductions. However, keep in mind that the IRS does not allow charitable rollovers to DAFs.
- Consider creating a charitable gift annuity. You can contribute cash or marketable securities worth a minimum of $5,000, and the Foundation will pay you a guaranteed fixed income for life. Visit this page for sample rates and other resources.
- Consider accelerating noncharitable gifts. The unified estate/gift credit of $12.06 million is scheduled to automatically reduce to around $6 million beginning with transfers made in 2026. Accordingly, taxpayers who intend to make significant gifts (either during their lifetime or in the form of bequests) may want to consider accelerating some or all of those gifts early.
As with any significant tax and charitable planning, it is always advisable to carefully consider potential changes in the context of your complete financial profile and to consult your tax advisor.
The Jewish Federation of Greater Pittsburgh does not offer tax or legal advice; consult your accountant, lawyer or licensed financial planner.