Any time of the year is a good time to give to the non-profits you care about most, but the end of the year often sees the highest influx of donations. Why? The holiday season is near, and people take a closer look at their tax strategy and goals. As you donate to charities this year, consider the following year-end giving tips and key dates to ensure your charitable contributions count for the 2024 tax year.
Four Year-End Giving Tips
Whether you donate regularly or only a couple of times a year, use these four tips to help make your charitable giving more efficient.
- If you plan to donate stock or mutual funds to a non-profit organization, plan ahead. With the influx of donations at the end of the year, processing time can be delayed. Non-profits must receive gifts by December 31st to issue a tax receipt for that year.
- Open a donor-advised fund to expedite the year-end giving process. It is one of the easiest ways to give and is especially beneficial for donating appreciated non-cash assets like stocks, bonds, ETFs and more. Learn more about the tax-saving power of donor-advised funds in our blog.
- Make charitable giving fun! Consider opportunities like supporting a local family for the holidays or volunteering together with family and friends.
- Work with a professional. Our team is here to answer your questions as you navigate charitable giving tax strategies this season and beyond.
Key Dates for 2024 Charitable Contributions
Are tax deductions a key component of your charitable giving strategy? If so, be sure to plan your donations in advance. Here are some key dates to consider for 2024 giving. Please note this is just a general guide.
- Credit card, bank account, and PayPal donations must be received by 11:59 pm EST December 31, 2024. Credit card and PayPal donations are typically received shortly after submission, while donations via your bank account can take multiple business days to settle.
- Checks must be postmarked by December 31, 2024.
- Wires or bank transfers must be received by 11:59 pm EST on December 31, 2024.
- Stocks/securities must be received by 11:59 pm EST on December 31, 2024.
Donating to non-profit organizations can be a win-win for many individuals – you get to support causes you deeply care about and may also be able to claim tax deductions for your contributions through itemization. By keeping these tips and deadlines in mind, you can make the most of your charitable giving strategy.
Sources:
https://www.givewell.org/about/donate/tax-deadlines
https://spmcf.org/blog/year-end-planned-giving-tips-for-professional-advisors
