Morris: Year-End Charitable Giving Critical for Nonprofits
Putting gifts in beautifully wrapped packages under the tree creates added impact at Christmas time.
Giving to your favorite charities in the days before the New Year can have added impact, too. So says those who work on the financial side of nonprofit work.
“Quite simply, the year-end giving season is the last and greatest opportunity to support worthy nonprofits before the year closes out,” said Henry Morris, regional senior director of mission advancement at The American Heart Association.
Such fully tax-deductible donations need to be received (or postmarked) by 11:59 p.m. Dec. 31 to qualify on 2022 returns.
Why does it matter what time of year I give?
For many nonprofits, giving at year-end is absolutely crucial to their ability to carry on their good work in the community. Did you know that roughly 31% of all nonprofit giving occurs in the last four weeks of the year, and about 1/3 of this figure occurs in the last three days of December!? Moreover, nearly 30% of all nonprofits raise between 25-50% of their annual budgetary needs during the important year-end giving season. So for nonprofits, year-end giving is often a “make or break” opportunity to ensure they can fulfill their mission in the coming year.
How do you pick causes?
I first consider the stability and effectiveness of the nonprofit, then look at the programs they offer and the needs they address. In the case of the American Heart Association, it is truly a world-class nonprofit dedicated to helping all people live longer and healthier lives. As for effectiveness, the life-saving results speak for themselves. From investing in cutting-edge research leading to medical breakthroughs (like pacemakers, defibrillators, and artificial valve replacements) to practical CPR training, healthy lifestyle education, and improvements to quality health care access in rural areas – there are few organizations on earth that have done more to improve the health and longevity of people all over the world.
Besides the American Heart Association, what charitable work are you looking to support at year’s end?
My family always gives a special gift to our local church to support the marvelous work they do in our community. We also have a heart for children (my wife and I have been blessed with five children and six grandbabies!) and give to St. Jude’s Children’s Hospital, Toys for Tots, and Operation Christmas Child through Samaritan’s Purse. All of these nonprofits meet my personal criteria of stability, effectiveness, and help meet the needs we are passionate about.
How can year-end gives have extra impact?
Many large employers will match gifts dollar-for-dollar to qualified nonprofits like the American Heart Association, but you need to check with your employer to be sure.
Please don’t miss this excellent opportunity to DOUBLE your impact through Matching Gifts!
What are some ways to donate that people might not usually think about?
Aside from cash gifts—which represent only about 3% of the average donor’s ability to make a gift—the American Heart Association is well equipped to accept many other forms of non-cash gifts in support of our life-saving work. Consider the following creative ways to support the life-saving work of the American Heart!
1. Gifts of Stock, Bonds, and Mutual Funds – appreciated securities that have been owned for more than one year can be gifted directly to the AHA, providing you with a nice tax deduction at their current fair market value while also completely bypassing capital gains tax. A double win!
2. Gifts from Your IRA – supporters who are at least 70 ½ years old can give up to $100,000 each year directly from their IRA account. These special Qualified Charitable Distributions (also known as IRA charitable rollovers) are tax-free to you AND count towards your Required Minimal Distribution
3. Donor-Advised Funds – supporters with an established donor-advised fund can easily recommend grants in support of the AHA’s mission directly from our website!
4. Cryptocurrency – with the recent volatility in crypto, this may be the best time to exit the market by donating Bitcoin, Ethereum, and over 50 other digitally-held funds to the AHA. Like gifts of stock, gifts of cryptocurrency avoid capital gains tax and provide a tax deduction at their current value.
5. Wills and Life Insurance – leave a specific bequest to the AHA in your will, or name the AHA as a beneficiary in your life insurance policy.
6. Planned gifts – Charitable Gift Annuities and Charitable Remainder Trusts are some of the planned gifts that pay you income and protect your assets while also benefitting the good work of the AHA.
7. Gifts of Real Estate – many forms of real estate (second homes, rental properties, undeveloped land, etc.) can be gifted to the AHA, helping to improve your liquidity, eliminate expenses, avoid capital gains tax, and receive a tax deduction based on the fair market value of the gift.
