The start of the Jewish New Year 5783 is precisely the time to start thinking about end-of-year giving for the end of the secular year 2022. With just a few months remaining, we offer these strategies to help you organize your charitable giving.
Appreciated assets: If you are selling a business, real estate, or other highly appreciated assets, think about where philanthropy fits in, not only as an act of generosity but also to avoid the capital gains tax. Call us to confidentially discuss your situation with Jori Mendel at 404-951-6900, and remember that we are always happy to work with your financial advisor or attorney to structure a plan.
Donor-advised Funds (DAF): Now is an ideal time to replenish your donor-advised fund or establish one. It can be especially beneficial to donate appreciated property to fund a DAF, because by doing so capital gains taxation with respect to the contributed assets is eliminated. Setting up a DAF is easy and can be done for as little as $2,500. Contact jmendel@jewishatlanta.org to open or replenish your fund.
Pay Your 2023 Campaign gift with your DAF: Federation’s 2023 Community Campaign has kicked off and you can support it through your DAF. The Campaign funds more than 70 partner agencies and organizations here and abroad and ensures that we can open doors of opportunity, support, and engagement for everyone. Your support for the Campaign makes us ready to meet urgent and ongoing Jewish needs.
Look into an IRA charitable rollover.
The IRA charitable rollover is an attractive option because it can help satisfy the minimum distribution requirement (RMD) without incurring income tax, even if you don’t itemize your deductions. You can also use your RMD to establish and grow an endowment fund at the Atlanta Jewish Foundation. This will allow you to support the organizations you care most about in perpetuity. For more information contact Rachel Rosner at 404-870-1879.
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.
Apply for an ALEF Fund tax credit. The ALEF Fund provides scholarships to public school students who wish to attend participating Jewish private schools. Through ALEF Fund, you can support Jewish education in Georgia at virtually no cost to you through a dollar-for-dollar Georgia income tax credit received for your contribution. The ALEF Fund is accepting 2023 tax credit reservations now through December 31st. www.aleffund.org
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.