At the end of each year, people often give to charitable institutions. This allows them to support various causes, while also reducing their tax liability. “With regard to charitable giving, there are a few things we stress to make the gift as efficient as possible for both the charity and the donor,” says Patrick Poling, managing director and senior portfolio manager at Southern Oak Wealth Group.
One: If a client is experiencing a large equity event, he advises using a donor-advised fund that year. “This will allow the client to make a large gift at once to help reduce taxable gains, but will also enable them to continue giving in future years from the fund itself.”
Two: Whether using a donor-advised fund or giving directly to a charity, clients can help further reduce their taxes by donating some of their most appreciated assets (stocks) instead of cash. “Since these do involve tax strategies, we always recommend clients confirm with their CPAs,” he says.
“We don’t ask for trust in the first meeting; that should be earned, but Southern Oak Wealth Group has a long track record of taking care of our clients with their best interests in mind.” ~Patrick Poling, managing director and senior portfolio manager at Southern Oak Wealth Group.