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# Maximize Your Charitable Impact in 2024: A Guide for Savvy Investors
At Extreme Investor Network, we believe in the power of investing not just for financial gain, but also for making a positive difference in the world. As we dive into the celebrating spirit of giving during the holiday season, we want to highlight innovative strategies for charitable giving in 2024 that can benefit both your financial portfolio and the causes dear to your heart.
## The Generosity of 2024: A Perfect Time to Give
With the S&P 500 soaring over 26% in 2024, many investors are sitting on hefty gains. If you’re inclined to share your financial success, there’s no better time than now to consider donating to your favorite charities, particularly on Giving Tuesday, the day following Cyber Monday when generosity is spotlighted.
## The Savvy Way to Donate: Gift Appreciated Assets
While cash has traditionally been the go-to option for philanthropic efforts, our analysis shows that donating appreciated assets—such as stocks, mutual funds, or even cryptocurrencies—can be a more advantageous approach. According to Brandon O’Neill, a charitable planning consultant at Fidelity Charitable, gifting appreciated assets allows you to avoid capital gains taxes while still receiving a tax deduction based on the asset’s fair market value at the time of the donation.
Here’s the unique part: In 2023, non-cash assets constituted 63% of contributions to Fidelity Charitable, with cryptocurrency contributions reaching $688 million by mid-November! This trend underscores a growing recognition of the value of diversifying charitable contributions beyond traditional cash donations.
## Understanding Charitable Deductions
For tax-savvy investors, it’s crucial to understand the implication of charitable deductions on your tax returns. If you itemize your deductions and your charitable donations surpass the standard deduction threshold of $14,600 for single filers or $29,200 for married couples filing jointly in 2024, you may benefit greatly come tax time.
Assets held for over a year can be transferred to a charity, dramatically increasing your tax efficiency. Miklos Ringbauer, a certified public accountant, notes, “The taxpayer gets the fair market value for the donation, rather than just the cost basis, providing a more substantial impact on their personal tax return.”
## Portfolio Benefits: A Win-Win
Beyond tax advantages, donating appreciated assets can serve as a strategic move for your investment portfolio. If certain stocks have ballooned in value, charitable donations can help rebalance your holdings and mitigate risk. As noted by Christine Benz, Morningstar’s Director of Personal Finance, “Employer stock is a prime candidate for this type of giving, as it can add substantial risk to your portfolio.”
#### Hot Stock Picks for 2024 Giving
Consider these S&P 500 rock stars that have surged in 2024, such as Palantir Technologies and Vistra Corp., both of which have witnessed gains exceeding 300% this year. These types of holdings make for particularly impactful donations while helping you diversify your investments.
## Strategic Giving: Planning Ahead
To maximize the impact of your charitable contributions, we recommend considering a “bunching” strategy, which allows you to group several years of donations in one go. This is particularly beneficial when paired with a donor-advised fund, simplifying giving and enabling you to support multiple organizations at once.
For investors over 70 ½, making a Qualified Charitable Distribution (QCD) from your IRA can be an exceptionally tax-efficient strategy. Excluding up to $105,000 in QCDs from taxable income affords a financial advantage while supporting the causes you care about.
### Your Next Steps
As we approach Giving Tuesday, we invite you to think strategically about how you can both gift and maximize your financial success in 2024. By donating appreciated assets, taking full advantage of tax deductions, and utilizing smart portfolio strategies, you can ensure your giving makes a significant impact—not only for the charities you support but on your financial future.
At Extreme Investor Network, we are committed to helping our members leverage their investments for social good while ensuring their financial strategies are sound. Stay connected with us for more insights on investing not just for today, but for the change you want to see tomorrow.
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This blog format not only makes the information more readable but also emphasizes the value-added benefits of following the guidance from Extreme Investor Network while blending financial wisdom with philanthropy. Happy giving!