Posted by lplresearch

Thursday, December 23, 2021

As we head into the final week of a strong year for equities markets, we at LPL Research are thinking about the season of giving, to friends and loved ones as we wind down a difficult year in this season of giving, but also to favorite charitable organizations that support those in need and causes we care about. Philanthropic giving crosses political boundaries, can be local or global, and powerfully reflects the individual choices of donors to channel support to where they think it’s most needed. LPL Research wishes all a joyous holiday season and today shares some information about charitable giving that may make everyone’s holiday season a little brighter.

  • The habit of end of year giving is tied to the holiday season and end-of-year reflection, but also to the tax calendar. Almost a third of charitable giving takes place in December and just over 10% over the last three days of the year (Source: Nonprofit Tech for Good). With fewer people itemizing deductions, end of year giving may not have the same sense of urgency. The truth is, no-one gives because of the tax deduction. It’s just a small incentive reflecting national values and creates a little extra motivation before the tax year ends.
  • Many workplaces match some charitable donations, LPL among them. Check with your workplace to see if they have matching funds. Matching funds may be limited. If your workplace no longer has matching funds available, take pride in your employer’s support of charitable giving and your colleagues’ philanthropic efforts. At the same time, consider starting to give earlier in 2022, since matching funds are often replenished at the start of the year.
  • For those with the means, there are charitable investing structures that can help maximize donations, minimize taxes, and build a more sustainable charitable legacy for favorite organizations. Some examples are Donor Advised Funds and for estate planning Charitable Remainder Trusts and Charitable Lead Trusts. Reach out to your financial professional if you think one of these options might be right for you.

LPL Research wishes all a joyous holiday season and looks forward to continuing to provide market perspective to our followers in 2022. Follow LPL Research through our blog, Twitter (@LPLResearch), and YouTube channel (youtube.com.LPLResearch). Happy holidays!

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index and market data from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).

Insurance products are offered through LPL or its licensed affiliates.  To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

  • Not Insured by FDIC/NCUA or Any Other Government Agency
  • Not Bank/Credit Union Guaranteed
  • Not Bank/Credit Union Deposits or Obligations
  • May Lose Value