Did you know that 41% of charitable giving occurs in December? I like to think people are motivated by the season, but the fact that the tax year is coming to end probably has something to do with it as well.
Whatever your motivation, I applaud you for supporting charitable causes. I have given a significant percentage of my income toward charitable causes for years, and I think the act of giving not only helps others, but helps me to be a better person.
For most physicians, your donation will be completely tax-deductible. That means that for a physician with a 38% marginal tax rate (33% federal plus 5% state), a donation of $10,000 to a qualified charity will save her $3800 in income taxes.
if your $10,000 donation was composed of shares of a mutual fund for which you paid $5,000, you would save $750-1190 in capital gains taxes by transferring the appreciated shares to the charity, rather than selling them and donating cash.
You can donate an appreciated investment without having to pay capital gains taxes
If you have an estate larger than $5.34 Million ($10.68 Million married), or as little as $675,000 in some states, a donation to charity either prior to or at your death decreases the size of your estate.
With these funds, you transfer your appreciated assets into the fund, then “recommend” to the fund which charities the fund should donate to.