Mixed feelings may arise as the 2021 calendar year comes to a close: it could be joy that a new year is coming; it could be hope that things will get back to “normal;” it could be sadness due to the hardships many have faced in recent times. It could be all of the above.
Whatever emotions this year-end brings, take a moment to reflect and consider what went well this year. What are those things that stir up gratitude in your heart? In light of thankfulness and gratefulness, what is the subsequent response?
Generosity, according to dictionary.com, is defined as “readiness or liberality in giving” and is a natural response to practicing gratitude. As an overflow from a thankful heart, others should naturally benefit. Bridgeworth advisors love to help clients be generous, and here are three ways to consider being generous before the end of the year:
- Consider donating to a local Scholarship Granting Organization. Each year, the state of Alabama reserves up to $30 million for Scholarship Granting Organizations (SGO). Alabama taxpayers can direct up to 50% of their tax liability to provide scholarships for children (grades K-12) in low-income families to pay tuition. For more details on how to complete this, click here.
- Consider donating appreciated funds to a Donor Advised Fund. If you own shares of a stock, mutual fund, etc., that have substantial gains, consider donating some or all of it to a Donor Advised Fund. This donation will allow you to provide financial assistance to your favorite charities while avoiding realizing any capital gains from these positions. The Community Foundation of Huntsville and The Community Foundation of Greater Birmingham are excellent places to get started.
- Consider redirecting some or all of your Required Minimum Distribution to a Qualified Charitable Distribution. If you are over the age of 70.5, you have the option to use your qualified retirement account to give to charity. Even though you are not required to take your Required Minimum Distribution until age 72, you may redirect some or all of your Required Minimum Distribution up to $100,000 to any qualified non-profit organization. You will also not realize any income in the process from this action.
Generosity looks differently for everyone, just as in all manners of clients’ financial lives; it truly embodies the term One-Size-Fits-None™. Today, take some time to practice gratitude and see how others could benefit from your generosity.
“No act of kindness, no matter how small, is ever wasted.” – Aesop
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