Five Ways to Give More on Giving Tuesday

On the heels of Black Friday and Cyber Monday—two of the most celebrated shopping days of the year—Giving Tuesday is a day that encourages philanthropy, collaboration and generosity. Last year, more than $400 million was raised on this day alone. If you want to join the movement, there are many ways you can get involved—from giving your time and talent to arranging a group fundraiser with your friends and family. (You can find more ideas on the Giving Tuesday site.)

No matter what cause you elect to support, here are five ways to make sure your gift has the greatest impact:

1. Claim matching funds. As many as 65 percent of large employers offer a matching gift program, according to research by the nonprofit America’s Charities. Find out if your company has a matching gift policy by checking with your HR office. Most companies offer a 1:1 match—meaning if you contribute $25, your company will also contribute $25. Some companies also offer paid volunteer time off, and some will make a contribution for the hours you volunteer. If you give on Facebook as early in the day as possible (8 a.m. EST or 5 a.m. PST), your gift may be eligible for a dollar-for-dollar match from Facebook, which has pledged $7 million in matching funds.

2. Donate appreciated assets—and give more. By donating long-term appreciated assets like stocks, bonds or real estate, you may be able to give more than if you sold the asset and made a cash donation. The reason is simple: As long as you have owned the asset for more than 12 months, you may be able to take an income tax deduction for its full fair-market value, and you generally don’t have to pay capital gains taxes on the unrealized appreciation of the assets you gift.

Transferring gifts of stock to multiple charities can be time consuming, however, and some nonprofits don’t accept noncash gifts. A donor-advised fund (DAF) can streamline the process, allowing you to make a gift of stock and then recommend cash gifts to all of your favorite causes from your DAF, after the stock has been sold. (For an example of the tax advantages of a DAF, go here.)

3. Roll over your gift from your IRA. If you’re 70 ½ or older and taking required minimum distributions from your IRA, you can reduce your taxable income by the amount you transfer directly from your IRA to a qualified charity up to a maximum of $100,000 a year. This is called a Qualified Charitable Distribution (QCD). You can also make a QCD to a designated fund and set up recurring gifts to a favorite charity. Unfortunately, DAFs and private foundations are not eligible to receive QCDs.

4. Put your giving on autopilot. Many donors have an amount they’d like to give each year. To help you meet your goal, you can pre-schedule your annual donations, or even set up more frequent donation payments—what many charities call “sustainer” gifts. Giving Tuesday is the perfect day to do this—either through your checking account, your credit card or your DAF. If you have a DAF with National Philanthropic Trust (NPT), you can go to the Grants tab in your donor portal, enter a charity name and set up a recurring grant recommendation under “Timing & Amount.”

5. Invest for impact. Giving Tuesday is also an ideal time to make sure that your investments are aligned with your charitable goals and values. You can incorporate your goals—from promoting gender equity to taking care of the environment—into your everyday finances. For instance, many company 401(k) plans offer socially responsible funds, and you can hold impact investments in your brokerage accounts and charitable savings plans, too. This fall, NPT introduced four new impact portfolios so that our donors can put their money to work to support their philanthropic goals even before recommending a grant.

Whether it’s with your time, your voice, your money or a seemingly small act of kindness, you can make a difference on Giving Tuesday that catalyzes change all year long. For more information on how NPT can help you with your giving, please contact us at (888) 878-7900 or email us at npt@nptrust.org.

NPT does not provide legal or tax advice. This blog post is for informational purposes only and is not intended to be, and shall not be relied upon as, legal or tax advice. The applicability of information contained here may vary depending on individual circumstances.

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