Charitable Giving Q&A with Financial Expert Neil Tjon-Hing

In this season of giving, we hope you will consider supporting Texas CASA! We cannot advance our mission for children and families across the state without the generosity of individual donors. Here is some helpful insight and expertise on charitable giving from financial advisor Neil Tjon-Hing with 49 Financial.

What is a charitable giving plan? 

A charitable gift to a nonprofit organization, whose goals and values align with yours, can be made in a number of forms: cash, property, appreciated stocks to name only a few examples. The donor expects nothing of value in return and there are different ways to gift these items. One of the most beneficial ways to donate is through a Donor Advised Fund, a simple and flexible way to support your charitable organization. When one gifts through a DAF, there is typically an immediate tax deduction eligibility, and the gifted funds can be invested for tax-free growth with the donor in charge to make grants to the charity of choice.

What are some common misconceptions about charitable giving and financial planning?

The most common misconception about charitable giving is that a certain level of donation, or certain amount of net worth is required to participate in a Donor Advised Fund. No minimum amount is required to implement a DAF strategy. One’s gift can have a much greater impact to the charity of choice since the initial donation not only creates a tax deduction, but the value inside of the DAF continues to grow tax-free, making those dollars stretch much further than when gifted outside of this strategic method. Additionally, its simplicity and flexibility are some of the many benefits gained when gifting in this manner.

What are some of the most tax-advantageous ways for anyone to donate funds to a nonprofit? 

One of the most tax-advantaged ways to donate funds is through the strategy of a Donor Advised Fund. Reasons to consider this method include:

  • It reduces one’s tax burden: this method can allow one to eliminate their long-term capital gains of appreciated assets given that certain IRS conditions are met.
  • It simplifies record keeping: the initial contribution is the main transaction that one needs to track.
  • When properly combined with financial planning tools like life insurance and charitable trusts, a DAF can often reduce or eliminate the burden of estate taxes to one’s heirs.

A donation to Texas CASA is an investment in the future of Texas children and families. You can learn about the many ways you can support us on our website, or feel free to contact us at partnerships@texascasa.org. Thank you!

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