With the holiday season upon us, we start thinking about making charitable donations for both philanthropic and tax purposes.
Writing a check or giving online is easy, but it might not be the most efficient or impactful.
Consider these other options
Monthly Giving - A monthly gift if $5 or $10 a month can provide regular support throughout the year for our organization and other causes that are meaningful to you.
Raise funds from your network - Select Chinese Mutual Aid Association as a nonprofit beneficiary and setup a Facebook or Instagram fundraising page to multiply your own giving. Challenge your friends to help you meet a fundraising goal!
Appreciated Stock - If you donate stock you’ve held for at least 12 months, you can deduct the full value of the investment without having to pay any capital gains on the appreciation.
Mutual Funds - You can also give away shares in mutual funds. Make sure the fund company transfers your shares directly to the charity.
Qualified Charitable Donation (QCD) from your IRA -
You can transfer up to $100,000 tax-free per year to a charity and decrease your Required Minimum Distribution (RMD) by the same amount, in effect lowering your taxable income. You must be 70 1⁄2 or older to take advantage of this strategy.
Donor Advised Fund - If you created a DAF in order to bunch your charitable contributions (useful for a high income year for its tax advantages) and streamline your giving in one account, select CMAA along with your favorite causes this season. As long as you contribute to your fund before 12/31, this will count for your 2022 charitable tax deductions. And then process your DAF recommended distribution when you can.
For stock, mutual funds, QCD, or DAF options, contact Rhea Yap at RheaY@ChineseMutualAid.org