Eight Strategies for Enjoyable Gift-giving this Season
/Winston Churchill once said, “We make a living by what we get, we make a life by what we give.”
2020 has marked one of the toughest years for many across the world. After several months of quarantining and careful social distancing, some have managed to set aside extra cash. At the same time, these same people feel limited by what they can do over the holidays.
Perhaps this is the year where you totally rock your gifting strategy. Below are eight gift-giving options you can try.
1. Check out charity websites. Have the means to give, but don’t know how to find a worthy charity? Guidestar.org can help you find or verify charity information. You can also discover new charities and filter for those with gold or platinum ratings.
2. Take advantage of tax-favored charitable giving. Just remember to vet any ideas you’re considering through your tax professional first.
a. Qualified charitable distributions. Over age 70? You can do a tax-free distribution from your IRA to a 501(c)(3) organization (e.g., churches, COVID-19 aid organizations, hurricane or fire relief agencies) up to $100,000. The IRS allows very few tax-free distributions from an IRA, so you should take advantage of the few that do exist. Contact your financial advisor to learn how easy this is. In a year where you have to take your Required Minimum Distribution, this counts towards the requirement.
b. Donor-advised funds. These charitable giving accounts were created to manage charitable donations on behalf of an organization or individual. Contributions are particularly helpful in years of sizeable income (property sale, business liquidations). In this case, you can lump all your giving into one year to get a maximum itemized deduction. As such, charitable deductions are most relevant for those who itemize.
To participate in a donor-advised fund, open an account in the fund and deposit cash or securities. While you must surrender ownership of anything you put into the fund, you retain the ability to invest the funds. You receive the tax deduction in the year that you give to the donor-advised fund, and you can distribute to the charities over time.
c. Appreciated stock. Instead of cash, give shares of appreciated stock. This allows you to avoid the capital gain on the stock shares you give.
3. Keep your focus on affordability. Even if 2020 has not been a stellar year for you financially, you can still give without breaking your bank account. Get creative on maximizing the fun while minimizing the cost! Here are a few ideas
a. Play Secret Santa. With Secret Santa, a group of friends or colleagues exchange presents anonymously. To set up, each participant draws or is assigned a group member’s name. Each person then makes or buys a gift—spending limits are set ahead of time—for the person whose name they drew. But be sure to keep your recipient’s name a secret. That’s part of the fun!
b. Organize a White Elephant gift exchange. The goal of a White Elephant gift exchange is to entertain party-goers rather than to gain a genuinely valuable or highly sought-after item. In fact, amusing, impractical and odd gifts make for biggest laughs! Social distancing keeping you apart? No problem! Organize a White Elephant gift exchange via Zoom! You may even explore White Elephant Online - Your Online Gift Exchange
c. Share the gift cost. If your gift idea is too expensive for you to manage on your own, go in on the gift with others.
d. Give your time. You don’t need to buy a gift to show you care. Instead of exchanging presents, meet up for coffee, go for a walk, or schedule a Zoom call. Odds are your recipient will enjoy simply spending time with you.
e. Think homemade. For some people on your holiday list, a homemade gift may be more meaningful than a store-bought item. Create a photo album filled with photos of you and the recipient. Build a shadow box that contains special mementos of your times together. Or package holiday cookies or other food items in a decorative box or basket. Need help getting started? Etsy and Pinterest offer a bounty of homemade gift ideas.
f. Set a limit. If you love giving gifts, consider setting a gift quantity or spending limit. That way you still get to experience the joy of giving while keeping your spending under control.
g. Offer your help. Another way to give is by offering to help others. This could mean setting up a friend’s internet TV, fixing a broken gutter, or making a gourmet dinner. Whatever your special skills are, put them to the task.
4. Remember that it’s the thought that counts. Take the time to sit and ponder what to give your loved ones for Christmas. In some cases, they might appreciate a hand-written card or a customized photo book rather than yet another gift card to stick in their wallet. Get started with these ideas:
a. Engage in a buddy brainstorm. Spend time brainstorming gift ideas with a trusted friend. Tap the power of Google or Amazon for tips on what to buy someone who likes a certain activity like yoga, baseball or board games.
b. Make a list throughout the year. When visiting friends or relatives, pay attention to items they might need around the house or things they mention during conversations.
c. Request to view Amazon wish lists. Many people keep a public “wish list” on Amazon. Ask to review it, so you can discover items they’d like to receive.
5. Consider core values. Are your recipients big on saving time? Maintaining good health? Partaking in novel experiences? With this in mind, consider gift ideas that address their core values:
a. Tickets to outdoor activities like the zoo or botanical gardens.
b. Gift card for a cleaning service or handyman through Handy.com.
c. A week of meal prep from a service like Blue Apron.
d. Babysitting services for a family with young children.
e. A customized calendar of top coronavirus-conscious adventures in your local area designed to inspire fun times in 2021.
6. Give gift cards. If you find yourself running out of time, a gift card is still a safe bet. Many people appreciate being able to choose their own present, especially when someone else is footing the bill. Just be sure to choose gift cards at stores where your pals are likely to shop.
7. Manage the hard-to-buy-for people. What about giving to the person who has everything? We all have someone in our lives who is impossible to buy for. For that person, you might consider the following:
a. Tasty gifts. Make something homemade or order from a specialty food company like Harry & David, Baker & Olive, or Ben & Jerry’s.
b. Category-specific gifts. You can almost never go wrong by sending flowers to a woman. Men are more likely to appreciate a meat treat from Omaha Steaks or Dan the Sausage Man. For your vegan friends, gift them a sampling of Beyond Meat products.
c. Buy one, donate one gifts. Combine utility with charity by purchasing from a site like Coffee4kids, Bomba Socks, Uncommon Goods, or Tom’s who donate items to those in need along with each purchase.
d. Comfort gifts. When the weather cools off, there’s nothing better than a cozy blanket, winter-scented candle, or a warm pair of socks to offer your special someone comfort during the chilly winter months.
e. Gifts that keep giving. Buy your friend a subscription to a magazine or video service like Outside Magazine or Hulu that they can enjoy all year long.
8. Put it on hold. Getting stressed out just thinking about the holidays this year? Take a year off. That’s right. You heard me. Give yourself a break. Spend your weekends in December meditating, traveling, journaling and catching up with old friends. Then choose to leave the shopping for everyone else. Reach out to your fellow gift exchangers now, and give them a break too. Skip sending the annual holiday cards or try an ecard like those designed by Jacquie Lawson.
Whatever you end up doing this holiday season, make sure it comes with a healthy dose of self-care. This has been an extremely challenging year, and you deserve to savor the coming months without breaking the bank or burying yourself in more stress.
