The season of giving is here, and if philanthropic trends continue, 2017 could be the year when charitable giving surpasses historic highs.
Last year, more than $390 billion was given to charity in the United States, a record amount. Nearly $60 billion was given to improve education; $33 billion was earmarked for healthcare; and more than $18 billion went to the arts. All of these figures marked significant increases from previous years.
You are part of this growing trend.
Giving by individuals, 2016
Total giving, 2016
Source: The Giving Institute, Giving USA 2017: The Annual Report on Philanthropy for the Year 2016.
Source: The Giving Institute; Giving USA 2017 Annual Report on Philanthropy for the Year 2016.
As encouraging as these numbers are, there may be opportunities for you to give more strategically. What assets will you donate and how much? When is the best time to give, and through what vehicle? To help answer some of those questions, many philanthropists have embraced donor-advised funds such as the Charitable Giving Fund at J.P. Morgan.
They are easily established, flexible and offer immediate tax deductions. You also can give them to others, engaging the next generation and allowing your children or grandchildren to pursue their own philanthropic passions.
Source: National Philanthropic Trust. Data as of September 30, 2016.
Expand Your Impact
- Create a legacy
- Engage your family in giving
Assets in the Charitable Giving Fund have the opportunity to grow tax free until they are granted to the charity of your choice, and there is no deadline to choose potential recipients. However, your tax deduction is available immediately, and giving through the Charitable Giving Fund can generate the highest deductions possible:
- Cash gifts generate deductions of up to 50% of adjusted gross income
- Gifts of hedge fund interests generate deductions of up to 30% of your adjusted gross income
Donor-advised funds aren’t only used by individuals. Private foundations can also leverage the benefits.
All U.S. foundations must pay out 5% of their assets each year. Some U.S. foundations have opened donor-advised funds to absorb some of their annual payouts. This allows them to meet their annual legal obligations yet gain time to choose recipients thoughtfully.
Whether you choose to champion education, the environment, healthcare or another crucial mission, consider increasing the impact of your generosity through the Charitable Giving Fund at J.P. Morgan.