Charitable Planning with your CPA

March 1, 2018 by Amy Johnson, CPA

Charitable giving is often associated with tax deductions, especially in the world of a CPA.  Ironically, the nearly $400 billion dollars that individuals and families in the United States give to charities are usually given for reasons other than tax deductions.  In the 2017 US Trust Study of the Philanthropic Conversation, only 10% of high-net-worth individuals stated that they give to charity to reduce their taxes.  More often they donate to encourage the next generation to be charitable, they do it for religious reasons or as a sense of obligation.  Either way, it doesn’t mean that you can’t take advantage of the tax law to reduce your tax obligations.

A CPA is a great person to have a charitable planning discussion with.  We know your financial picture; your financial goals and we love to have discussions regarding your charitable passions.  There are several natural opportunities to discuss your charitable giving aspirations.

• When you provide a beneficiary designation on your IRA or qualified plan
• When you are at the stage of receiving a required minimum distribution from your IRA – investigate a Qualified Charitable Distribution (QCD) instead
• When you are reviewing your estate planning
• When you provide a beneficiary designation on your life insurance
• When you are reviewing your investment planning

Whether you have one of the events coming up mentioned above, or if you just want to explore opportunities to give more and how it effects your financial situation, give your CPA a call.  Or contact the team at Gordon Advisors, PC to discuss options.