Continuing education is a huge part of my work. Honestly, I don’t think you can be a good financial planner without constantly striving to learn. Thankfully, there’s no shortage of educational resources out there—though dodging the “salesy” fluff is a skill in itself.
Over the holidays, I struck gold. I tuned into a webinar by Dr. Russell James from Texas Tech University—Professor, Chair of Personal Financial Planning, Charitable Giving Program Director, and, based on his insights, probably a financial wizard. Hitting play on that webinar? Best decision ever.
I might be a financial planning nerd, but his presentation blew my mind. I was rewinding parts, furiously jotting down notes, and even quoting him at dinner (sorry, family). The ideas weren’t just informative—they were transformative. A few could completely change the way we approach charitable giving.
Let me share two strategies that really lit a fire under me.
Strategy 1: Donate Appreciated Stock, Not Cash
This one’s classic, but many people skip the crucial next step. Sure, donating highly appreciated stock avoids capital gains taxes, but then… buy back the stock with cash you’d have donated otherwise.
Here’s the play:
Imagine you have Coca-Cola stock you’ve held forever—your heirloom shares. You bought them for pennies, and now they’re worth thousands. You don’t want to sell because it’s like parting with family, but you also want to support a cause close to your heart, like the Humane Society.
The move? Donate those Coca-Cola shares instead of cash. No capital gains tax. Then, use your donation cash to repurchase the stock at its current value. You’ve supported the dogs and kept your portfolio intact. Smart, right?
Strategy 2: Be Strategic in Your Will
This one’s a game-changer: when leaving money to a charity in your will, choose wisely what you give.
Here’s the breakdown:
Many people leave property—cars, homes, heirlooms—to charities. But property gets a step-up in basis, meaning your family can sell it without triggering capital gains taxes. That’s great for your heirs, so property is better left to people, not nonprofits.
Now, consider IRAs. If your family inherits an IRA, they’re required to withdraw the funds within 10 years under the new rules. These withdrawals often bump them into higher tax brackets. But if you leave your IRA to a charity, they pay no taxes on the withdrawal, maximizing the gift’s impact.
Keep It Simple (or Call Me!)
Wait—am I losing you? I know this stuff can get super technical. We’re talking tax rules, marginal rates, and beneficiary strategies. It’s exciting to me, but I get it—it’s probably not how you want to spend your Saturday.
That’s where I come in. My job is to handle the nerdy details so you can focus on the joy of giving—seeing your gifts change lives, save animals, or support causes you care about.
If you’re charitably inclined and want to maximize your giving, let’s chat. Together, we’ll make your generosity go further.