The holiday season is a time to reflect, show gratitude, and make a difference. For many, giving back is a way to spread joy and support causes close to their hearts. But did you know that your generosity can also provide financial advantages? By donating strategically before December 31, you can maximize your impact and enjoy potential tax benefits.

Make Your Giving Go Further with Tax Benefits

Charitable donations can reduce your taxable income, there are important rules to keep in mind:

• Itemized Deductions: To claim a charitable deduction, you need to itemize your deductions. For 2024, the standard deduction is $13,850 for individuals and $27,700 for married couples jointly. Your total deductions must exceed this amount to benefit your itemizing.

• Qualified Organizations: Ensure your donations go to IRS-approved 501(c)(3) organizations. Use the IRS website to confirm an organizations eligibility (https://www.irs.gov/charities-and-nonprofits).

Give Smarter: Donate Appreciated Assets

Want to make a bigger impact without spending more? Consider donating appreciated assets, such as stocks or mutual funds, directly to a charity. Here's how:

• Avoid Capital Gains Tax: By donating assets that have grown in value, you bypass the capital gains tax you would have owed if you sold them.

• Maximize Deductions: You can claim a tax deduction for the fair market value of the assets, provided you've owned them for more than a year.

Bunch Your Contributions to Maximize Impact

If your annual donations don't exceed the standard deduction, you can "bunch" multiple years' worth of donations into one tax year. By consolidating your contributions in 2024, you may qualify to itemize your deductions, unlocking additional tax benefits. This is especially useful for those who want to maintain their giving levels while optimizing tax savings.

Take Control with a Donor-Advised Fund

Donor-advised funds (DAFs) offer a flexible and tax-efficient way to manage your charitable giving. Here's how they work:

• Immediate Deduction: Contribute to a DAF this year and claim the tax deduction immediately, even if you distribute the funds to charities over time.

• Plan Your Impact: Use the DAF to support causes at your convenience, ensuring your giving aligns with your values and goals.

Make a Difference with Qualified Charitable Distributions

For individuals aged 701/2 or older, Qualified Charitable Donations (QCDs) from an IRA offer a unique way to give:

• Reduce Taxable Income: A QCD allows you to exclude the donated amount from your taxable income, even if you don't itemize.

• Satisfy RMDs: QCDs can count toward your Required Minimum Distribution (RMD), making it a smart choice for retirees.

Act Before December 31

To take advance of these strategies for 2024, your donations must be made by December 31. For cash gifts, ensure checks are postmarked by this date, and for online contributions, complete the transaction before midnight. If you’re transferring assets, start the process early to avoid delays.

Why Your Generosity Matters

Your donations don’t just provide tax benefits — they make a tangible difference in the world. Your gift has the power to change lives, from helping a family in need, supporting life-saving research, or funding educational programs.

At Arrow Advisors, we’re here to help you align your charitable giving with your financial goals. If you’d like guidance on making the most of your contributions, our team is ready to assist.

Let’s live generously, plan strategically and make a lasting impact this holiday season — together. Contact us today to create your personalized giving plan!

Advisory Services offered through International Assets Investment Management, LLC. The information contained herein is obtained from carefully selected sources believed to be reliable, but its accuracy or completeness is not guaranteed. This material is for informational purposes only and is not a solicitation or a recommendation. All expressions of opinions are subject to change without notice and are those of Arrow Advisors. Strategies listed herein may not be suitable for all investors. Any information presented about tax considerations affecting client financial transactions or arrangements is not intended as tax advice and should not be relied on for the purpose of avoiding any tax penalties. You should discuss any tax or legal matters with the appropriate professional.