If you’re already dreading asking your clients to pull together their receipts and other documents for 2022 tax filings, this may be a good time to take proactive steps to avoid being in this same spot next year.
When it comes to charitable giving, your clients may find that organizing their giving through one or more funds at the Omaha Community Foundation will make their lives easier. Establishing a fund at the Omaha Community Foundation is an easy way to organize and track charitable giving. A client can take advantage of this feature by making a single, tax-deductible contribution each year to the Omaha Community Foundation, to be added to their Charitable Checkbook®, donor advised fund or other type of fund.
An especially tax-savvy technique is for the client to make this contribution using highly-appreciated stock. After the stock has been transferred to the Omaha Community Foundation, the proceeds from the Foundation’s sale of the stock – free from capital gains tax – are then used for grants to support your client’s favorite charities. No matter how many different charities receive support from the fund, the client still has just one receipt to keep track of charitable donations for income tax deduction purposes.
The subject of gathering up tax receipts for charitable donations is often a prompt for clients to get organized with the rest of their financial lives, too. At the very least, the subject of charitable giving can pave the way for a discussion about the basics of estate planning.
Charitable planning is one of many steps in your work with clients, but it can be an excellent catalyst for helping clients understand why they need that comprehensive estate and financial plan you’ve been encouraging them to complete. The team at the Omaha Community Foundation is happy to help with the philanthropic components of your service to clients. Contact us at giving@omahafoundation.org or 402-342-3458.