During the holidays, we spend time with loved ones and reflect on what we’re grateful for. It’s a great time to think about giving back to our communities as well. Greater Cincinnati Foundation (GCF) helps charitable-minded individuals by serving as a hub for giving money to charity with great impact.
When COVID-19 hit, they partnered with other organizations to raise $7.3 million to help the most vulnerable members of our community, and later this year, they funded the Racial Justice Fund with $5 Million to start, joined by partners including Graeters, Skyline Chili and FC Cincinnati.
“This year, we’re also curating a list of needs on our website from local nonprofits called A Special Gift, which is focused on safety net organizations that local donors can support,” says Phillip Lanham, Chief Philanthropy Officer of Greater Cincinnati Foundation.
Many of the funds within the foundation are donor-advised funds, where an individual or family contributes cash, stocks, property or bequests. GCF invests these assets and the family decides which organizations to support from their fund.
“Grants from donor-advised funds are up 45% as of the end of September compared to the past year, for a total of $54 million,” says Phillip.
Year’s end is a wise time to think about next year’s charitable giving.
“We all get requests and we react by giving, but philanthropic giving experts have a suggestion for carefully planning our giving,” says Phillip. “Half of your giving is for your passion areas, 30% should be in loyalty areas like schools or houses of worship, and the last 20% is for unplanned reaction giving, such as a natural disaster response.”
Another way to plan ahead to give is to maximize the impact of your donations over time. Dianna Knudsen, a local financial advisor with Edward Jones, shares that certain assets, such as appreciated stock, can do good in the community while lessening your tax burdens. Your financial advisor can help you identify which assets, when donated, will lower the total taxes you need to pay.
“When you have to take required minimum distributions at 72 years old from IRAs, you can donate via a Qualified Charitable Distribution, or QCD,” says Dianna. “These donations come straight from your IRA without being included in your income for tax purposes.”
Advisors also help guide legacy planning, helping you make bequests carefully to maximize the tax benefits related to beneficiaries and charities.
“The most successful individuals who are able to maintain their ideal lifestyle in retirement, including charitable giving, are the ones who make a plan,” says Dianna.
Get Help Making a Plan
Greater Cincinnati Foundation
720 E Pete Rose Way Suite 120, Cincinnati
Dianna Knudsen-Edward Jones
5770 Gateway Blvd. Suite 103, Mason