There’s a special kind of joy that comes with giving back. Supporting causes close to your heart is a meaningful way to make an impact, share your values, and leave a legacy you’re proud of. But let’s be honest—if you can make the world a better place and get a little tax break while you’re at it, why not?
At Astra Wealth Management, we believe in generosity done smartly. We’re here to help you maximize your impact and your tax benefits.
Why Charitable Giving Matters
Philanthropy isn’t just about writing checks; it’s about shaping the world you want to see. One of the great benefits of achieving wealth is being able to align your giving with your values, fueling positive change. Plus, knowing you’re making a difference feels good—and research shows it’s good for your mental health, too.
The Tax-Smart Way to Give
We all know giving is its own reward, but there are ways to make it more rewarding financially for all involved. Here’s how to give generously and strategically:
1. Use Appreciated Assets
Skip the checkbook. Donating appreciated securities like stocks or mutual funds allows you to avoid capital gains taxes and deduct the full market value of the asset.
2. Bundle Contributions with a Donor-Advised Fund (DAF)
A DAF lets you make a large contribution in one year, receive an immediate tax deduction, and recommend grants to charities over time. It’s perfect for years when you have a higher income or want to maximize deductions.
3. Take Advantage of the QCD
If you’re over 70½ and have a traditional IRA, consider a Qualified Charitable Distribution (QCD). It allows you to transfer up to $100,000 directly to a charity, satisfying your Required Minimum Distribution (RMD) without it being taxed as income.
4. Itemize to Unlock Deductions
The standard deduction is great, but itemizing might save you more if your charitable donations and other eligible expenses exceed the standard threshold.
5. Work With Your Advisors
Philanthropy isn’t one-size-fits-all and it should be part of a broader strategy. This is where we come in. Work with your financial advisor and your CPA to craft a giving strategy that fits your goals and tax situation.
What’s Your Legacy?
At Astra, we see charitable giving as more than a financial strategy—it’s a way to create a legacy that extends beyond your lifetime. Whether it’s funding scholarships, supporting local organizations, or your church, your generosity sparks a ripple effect of positive change.
Giving is personal, but it doesn’t have to be overwhelming. If you’re ready to explore how charitable giving can fit into your financial plan, let’s chat. Together, we’ll make the most of your generosity—while making the world a little brighter.
At Astra, we don’t just manage wealth, we help you create a legacy worth celebrating.
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Astra Wealth Management, LLC (“Astra”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Astra and its representatives are properly licensed or exempt from licensure.
The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.
The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.
This information is general in nature and should not be considered tax advice. Investors should consult with a qualified tax consultant as to their particular situation.