A Season of Thanks and Giving

~ Contributed by Matthew L. Brown, Brown Law Group, LLC; Member, DeKalb County Estate Planning Advisory Committee (EPAC)

Matt Brown, DeKalb County Estate Planning Advisory Committee

Each year, the holiday season seems to start earlier and earlier. It is not uncommon to hear refrains of “get your holiday shopping done in October!” or to watch your neighbor put up holiday decorations while children are still trick or treating. Regardless of whether this “expanded” holiday season is a joy or an encroachment, consider making one shift in your behavior… let Thanksgiving become the time of holiday-giving.

From its Christian roots, Christmas-giving has been a tradition since biblical times. As the Magi presented Jesus with gifts following his birth, Christians were encouraged to model this behavior by giving to those less fortunate. As the holiday season has become a time of revelry, joy, and counting blessings, it is appropriate that we would pause and consider those less fortunate.

But the methods of giving in the modern era are different than direct charity that was supported and promoted by religious institutions in past generations. Charitable organizations today offer donors the opportunity to direct their gifts to specific causes with programmatic support to target the needs of the community. This modern charity is complicated by tax rules and administrative limitations, so please consider the following when planning your holiday-giving:

• Many financial institutions impose cut-off dates for certain financial transactions. For example, direct stock transfers may need to be scheduled before December 15 to ensure the transfer of shares to the charity. Funds held in money market accounts may need several days to be liquidated before they can be transferred.
• Qualified Charitable Distribution (QCD) contributions allow a donor who is over the age of 70 ½ to transfer funds from a tax-deferred retirement account directly to a charity without receiving the funds as taxable income. For donors over the age of 72, the QCD can be used to satisfy the donor’s required minimum distribution. Setting up a QCD requires the completion of distribution forms with the financial institution.
• A charitable gift that is made by check is effective when the check is mailed, but with delivery delays, the gift may not be received until weeks later. The charity will acknowledge the gift on the date received.
• Complex giving may require the assistance of the charity’s staff, such as the creation of a donor advised fund or a gift of grain. These individuals may have limited availability during the holidays due to their own family commitments.

As we gather to give thanks, we can embody that thankful spirit with a giving spirit. Shifting our holiday-giving to Thanksgiving frees us to focus on family and faith instead of finance during the holiday season.

For information on donations to the DeKalb County Community Foundation during this upcoming holiday season, contact Executive Director Dan Templin at 815-748-5383 or dan@dekalbccf.org.