FINANCIAL FOCUS

Gifts that Give Back:

Make the Most of Charitable Donations

By Robert May

Assistant Vice President

Frost Commercial Banking

No matter your interests, making generous gifts to causes you care about can be one of the most meaningful uses of your money. Beyond the intangible rewards, charitable giving offers financial benefits for you. When you give to people or institutions in need, the government may reward you with tax advantages.

But, as with any financial decision, it’s wise to ensure you’ve examined the best course of action. To maximize the impact of your gift, do some homework in advance.

Following are important considerations to giving back:

• Be proactive and purposeful

Take time to learn about causes and organizations that align with your values. Whether you’re passionate about helping underprivileged children, protecting the environment or supporting the arts, there’s sure to be a non-profit agency awaiting your donation.

• Do your research

While most non-profits have good intentions, not all have the experience and structure required to put your money to its best use. Other so-called charities are downright scams. Before donating, make sure the non-profit is a legitimate, tax-exempt, 501(c)(3) organization. Ad-

ditionally, ask questions about how your donation will be used. Will it directly benefit the cause you support, or is it paying the salary of the CEO?

• Take advantage of tax code

Donations to qualifying 501(c)(3) institutions are tax deductible, so keep your receipts and documentation. But remember that deducting donations of more than $300 ($600 if filing jointly) will require itemizing your tax return. Review IRS Publication 526 for details. If you’re over age 701/2, consider making your donation via a Qualified Charitable Distribution from your IRA. This strategy counts toward your required minimum distribution for the year but does not increase your adjusted gross income. If you’re looking to transfer wealth and limit future estate taxes, consider making monetary gifts to family and friends.

Ready to take charitable giving to the next level? Consider a donor-advised fund which allows you to contribute to a single account with investment growth potential. The account team handles distributing the funds to meet your philanthropic goals and capture tax advantages. Alternatively, consider establishing a private foundation or charitable trust to meet your philanthropic goals.

If you’re ready to explore charitable donation strategies, Frost is here to support you. Whatever your budget or beliefs, Frost wealth advisors can help you make smart financial decisions that lead to positive change.

Would you like to talk to a financial professional? Contact Robert May at 713.388.7821 or Robert.May @frostbank.com.

Investment and insurance products are not FDIC insured, are not bank guaranteed, and may lose value.

Brokerage services offered through Frost Brokerage Services, Inc., Member FINRA/SIPC, and investment advisory services offered through Frost Investment Services, LLC, a registered investment adviser. Both companies are subsidiaries of Frost Bank.

Investment management services, financial planning and trust services are offered through Frost Wealth Advisors of Frost Bank.

Additionally, insurance products are offered through Frost Insurance.

Deposit and loan products are offered through Frost Bank, Member FDIC. Frost does not provide legal or tax advice. Please seek legal or tax advice from legal and/or tax professionals.

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