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Year End Giving

Plan Your Year-End Giving and Maximize Impact

As the year 2024 comes to a close, it's the perfect time to review your charitable giving. Your thoughtful contributions today can create a lasting legacy for generations to come. Explore these impactful options to make the most of your year-end giving.

Smart Giving with Gifts of Stock

Appreciated Stock:

Maximize your tax benefits by donating appreciated stock directly to Potomac.

  • Receive a charitable deduction based on the stock's fair market value at the time of transfer.
  • Avoid capital gains tax entirely.

Tip: Don't sell the stock first! Direct transfers provide the full tax advantage. We'll help you or your broker handle the transfer smoothly.

Depreciated Stock:

Turn a loss into a tax-saving opportunity by selling depreciated stock to realize a tax loss.

  • Donate the proceeds to support Potomac, which may help offset capital gains or other taxable income.
  • Discuss this strategy with your financial advisor to maximize benefits.

Make Your IRA Work for You and Potomac

If you're over 70½, consider a Qualified Charitable Distribution (QCD):

  • Direct up to $105,000 (income tax-free!) from your IRA to support us, whether you itemize deductions or not.
  • For donors aged 73 and older, QCDs can also satisfy your Required Minimum Distribution (RMD) while reducing taxable income in future years.

Why a QCD?

  • It's not taxed as income, so you won't receive a charitable deduction, but it's a powerful tax-efficient giving method.
  • Even if you're not yet required to take RMDs, a QCD is a meaningful way to invest in your legacy and ours.

Leverage Your Donor-Advised Fund (DAF)

Already using a DAF for charitable giving?

Make a year-end recommendation to support Potomac today. Your generosity ensures we can continue our mission in 2024 and beyond. (Remember, DAFs do not provide additional tax deductions when grants are made.)

Bunch Contributions for Increased Tax Savings

If you're close to exceeding the standard deduction threshold, consider "bunching" donations by:

  • Making next year's planned contributions this year, or
  • Adding to your Donor-Advised Fund.

This strategy can help you itemize deductions, increasing your tax savings.

Ask About Employer Matching Gifts

Double or even triple the impact of your gift!

Many employers match or exceed employee charitable contributions. Check with your HR department to see if there is paperwork to secure a matching grant to Potomac from your company or company foundation.

Max Out Your Charitable Deduction

Did you know?

  • You can deduct up to 60% of your adjusted gross income for cash gifts and 30% for gifts of property.
  • Consult your tax advisor or IRS guidelines for details and to determine how to make the most of your charitable contributions.

Make the Gift That Pays You Back

Establish a Charitable Remainder Trust (CRT) before December 31st to:

  • Lock in a current-year charitable deduction.
  • Remove assets from your estate to reduce estate taxes.
  • Provide you or your beneficiaries with income over time while supporting our mission.

As the new year approaches, take time to review your financial accounts, retirement plans, and insurance policies. Consider naming us as a beneficiary to ensure your legacy continues to make an impact.

Important Deadlines for Year-End Giving

To qualify for a 2024 tax deduction, ensure your gift is completed on time:

  • Appreciated Stock: Complete transfers by Dec. 26, 2024 to allow brokers enough time to process the transaction.
  • Credit Card Gifts: Make online or phone donations by 11:59 PM on Dec. 31, 2024.
  • Checks via USPS: Postmark by Dec. 31, 2024.
  • Checks via UPS/FedEx/DHL: Ensure delivery by Dec. 31, 2024.
  • QCDs: Checks from self-directed IRAs must clear by Dec. 31, 2024.
  • Wire Transfers: Initiate transfers no later than Dec. 28, 2024 (check with your bank for processing times).
  • DAF Grants: Initiate early to allow for processing before year-end.

Next Steps

Before making your gift:

  1. Confirm with us which assets and donations we can accept.
  2. Notify us of any transfers or donations so we can track and acknowledge your gift.
  3. Confirm processing deadlines to meet your tax deduction goals.

We're Here to Help!

Have questions or need assistance? Contact us at boverstreet@potomacschool.org or call (703) 749-6330. Together, we'll find the best way to meet your charitable goals.

Disclaimer: This information is intended as a general guide. Please consult your financial advisor, CPA, or attorney to determine how these strategies apply to your situation.