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U.S. individuals, families and businesses give an average of more than $1 billion to charity every year.

By giving through a community foundation, your clients have access to our charitable giving experts, helping them make the most of their charitable dollars while receiving maximum tax deductions.

As a charitable partner for local tax planners, San Diego Foundation makes charitable giving easy for you and your clients, developing tax-smart giving strategies that include when to give, how much to give and what asset(s) to give while providing you with reporting that is streamlined and accurate.

“My clients ​​really value the San Diego Foundation’s connections and work in the community. SDF helps me accomplish my clients’ financial planning objectives and charitable giving goals in new and innovative ways.”

Rick Brooks, CFP®, CFA®
Advisor, Director / Investment Management
Blankinship & Foster LLC

By using proper tax planning strategies,
charitable contributions can reduce three kinds of federal taxes:

1. Income Tax


Donations to 501(c)(3) public charities qualify clients for an itemized deduction from income. Because the tax rate is then applied to a reduced income, this can minimize your clients’ overall tax liability.

Many donors don’t realize that there are many ways to maximize this seemingly straightforward deduction. For instance, they can “bunch” their charitable contributions in a single tax year, using a donor-advised fund, to increase the amount they donate in a high-income year, and then the funds can be used to support charities over time. Or they can make a combined gift of appreciated assets and cash to maximize their benefits.

2. Capital Gains Tax


Your clients can use charitable contributions to reduce their capital gains tax liability by donating long-term appreciated assets. Not only can they deduct the fair market value of what they give from their income taxes, they can also minimize capital gains tax of up to 30 percent.

Assets subject to capital gains taxes can include investments like stocks or mutual funds, or complex assets like real estate. They can include assets that are both publicly traded or non-publicly traded. For example, some clients donate shares of a private business before it is sold to dramatically increase their charitable impact.

3. Estate Tax


The federal estate tax is a tax on the transfer of your client’s property at their death. As of 2022, the estate and gift tax exemption is $12.06 million per individual.

By making properly structured gifts and donations, your clients can remove assets from their estate before the total is tallied and taxed. In fact, you have an unlimited charitable deduction if your estate plan makes gifts to charities.

Charitable Giving Tax Strategies

As San Diego’s only regional community foundation, we’re experts in identifying needs county-wide and maximizing impact. We connect clients with nonprofit organizations and philanthropic opportunities that reflect their values.

Our Giving Team can help you identify the best charitable giving strategies for your clients and their families, including:

Assets We Accept

We accept cash, non-cash and complex assets for charitable giving. Donating assets helps lessen the tax implications for appreciated assets or liquidity events.

Traditional assets

  • Cash
  • Stocks
  • Bonds
  • Mutual Funds
  • Retirement Plans
  • Life Insurance

Complex assets

  • Private Stock
  • Real Estate
  • Business Interests (including partnerships and interests in LLCs)

Resources

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We Can Help

Donor-advised funds and other charitable funds at SDF maximize your clients’ community impact and annual tax benefits.

Since 1975, we have partnered with tax planners and their clients to find ways to create positive impacts in communities across San Diego and beyond.

Interested in learning how our charitable giving strategies can meet your clients’ tax planning goals? Contact us.

Submit a Contact Form

Leslie S. Klein

Leslie S. Klein, CFP®, AEP®
Director, Gift Planning Advisor
lesliek@sdfoundation.org
(619) 814-1353

 

Jason Rogers

Jason Rogers, AIF, CWS
Director, Wealth Advisor Relations
jrogers@sdfoundation.org
(858) 245-1508