Gift of Giving

April 5, 2023
Originally published NOVEMBER 29, 2022

As we close out the year, this is a time that many are thinking about charitable giving. This year we have spent some time talking with many of you about beneficial ways to give to charity.

Changes within Recent Years

With the changes that have taken place in the tax code in recent years, many individuals lost the ability to itemize their deductions and with that they lost the tax benefit of charitable giving. While charitable giving is about more than just the deduction we receive on our tax return, there are still ways to make the most of your giving from a tax perspective.

Appreciated Securities

One of the primary topics we discuss when it comes to gifts to charity is the gifting of appreciated securities. This option has multiple benefits to you as a taxpayer. When you donate an appreciated security, you are removing the assets from your portfolio and will not have to report any capital gains that would come with selling the security.

When the charity receives the security, they are receiving it at its fair market value to use as they see fit. For your tax reporting you are also getting the benefit of a deduction at the fair market value price of the security when donated if you have held the security for more than one year. This means no tax on the gain, an increased deduction at fair market value, and an overall benefit for the charity to continue their mission.

Considering the Amount Donated

Some additional items to consider when gifting securities is the amount you want to contribute and who would you like to contribute to. Often, individuals are looking to support multiple organizations over time, while also looking to minimize taxes in a given year where they see their income growing.

In this case the option of a Donor Advised Fund (DAF) supports both goals. When establishing a DAF, the individual can donate larger amounts of appreciated securities for a tax deduction and then make donations over time to support the various organizations they are passionate about with contributions made from the DAF. While the tax deduction can be taken in the year the appreciated securities are moved to the DAF, the donations to charitable organizations can be spread out over multiple years allowing individuals more flexibility.

Qualified Charitable Distributions (QCDs)

Another gifting option for those that have reached retirement is making Qualified Charitable Distributions (QCDs) from an IRA. When gifting will not be beneficial as an itemized deduction, QCDs are a great option. Amounts given as QCDs help satisfy an individuals required minimum distribution (RMD) and are also not reportable as income. When it is unlikely that your gift to charity will allow you to benefit from itemizing your deductions instead of taking the standard deduction, the QCD allows you the benefit of decreased taxable income instead.

Discuss During Your Annual Meeting

As we close out 2022 and move into the new year,  charitable contributions may be something you are considering as part of your overall financial picture and legacy. Our team is here to help.

Please keep in mind that Fidelity recommends that all QCDs are submitted by December 15th to avoid:

  1. a disruption in the transaction
  2. adverse tax ramifications
Our Financial Planning Process

At Curran we value service over sales and believe quality service yields happy clients. Below is our 4-step process (the first three steps at no cost to you).

Engage & Discover

A short introductory call for us to get to know one other. During this call we will discuss your financial goals, concerns and hopes for the future.

Goals & Data Gathering

In this meeting we will go over your current financial situation, take a deeper look at your goals, discuss your risk tolerances, and collect the data necessary to build a formal proposal.

Proposal & Evaluate

Based on our data gathering session, our Private Wealth Managers will present you with a custom proposal tailored to your needs. We encourage individuals to take the time to evaluate this proposal.


If you are comfortable with the proposal and choose to invest with Curran, our team will be there every step of the way assisting in opening the recommended accounts and facilitating all necessary parts of your onboarding process.