New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Charitable Giving for ConocoPhillips Employees: Exploring the Financial and Tax Benefits

“ConocoPhillips employees can gain meaningful advantages by aligning charitable giving with strategic planning, and as Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement, emphasizes, understanding how tools like donor-advised funds and retirement account strategies work together is essential to helping maximizes both philanthropic impact and long-term financial efficiency.”

“ConocoPhillips employees seeking to amplify their charitable impact should explore how strategic giving aligns with their broader financial plan, and as Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement, emphasizes, thoughtful planning using donor-advised funds and appreciated assets can help increase philanthropic efficiency while maintaining alignment with evolving tax strategies.”

In this article, we will discuss:

Choosing between itemized deductions and standard deductions
Using donor-advised funds and appreciated assets for tax-efficient giving
Leveraging retirement accounts and advanced strategies to increase charitable influence

ConocoPhillips employees looking to manage their charitable contributions can benefit significantly from understanding how tax-efficient strategies align with philanthropic goals. As tax laws evolve, gaining clarity on these approaches becomes essential. This article outlines ten strategic methods to help enhance your charitable contributions while potentially reducing tax liability and strengthening your impact.

Understanding Deductions: To Itemize or Not to Itemize?

For ConocoPhillips employees, evaluating whether to itemize deductions is a key decision that depends on personal financial circumstances. Here are the standard deduction amounts for 2025:

$15,000 for married individuals and single taxpayers filing separately
$30,000 for married couples filing jointly

Additional deductions for taxpayers over age 65 or who are blind may range from $1,600 to $2,000, depending on marital status.

Strategic Charitable Contributions

When donating appreciated non-cash assets such as stocks, real estate, or ownership interests in private companies, donors may bypass capital gains tax and potentially deduct the full fair market value—if they choose to itemize. This can help enhance the total value of the contribution and yield greater tax efficiency.

Using a donor-advised fund (DAF) is another method for making charitable gifts in a tax-conscious manner. Contributions to a DAF can be distributed over time while offering an immediate tax deduction. This method is especially useful for larger donations or for grouping contributions into a single tax year.

Aligning Investments and Retirement with Charitable Goals

When adjusting your investment portfolio, consider a combination of selling and donating. By donating a portion of appreciated assets, you may help offset capital gains taxes from other sales and support charitable causes in the process.

If you are age 70½ or older, qualified charitable distributions (QCDs) of up to $108,000 from your IRA can count toward your required minimum distributions (RMDs) for 2025, tax-free. Note that QCDs cannot be used for donor-advised funds, but they are well-suited for direct contributions to qualifying charities.

Naming a charity as the beneficiary of a retirement account such as an IRA can allow the full balance to support philanthropic efforts while potentially avoiding income or estate taxes.

Advanced Planning Approaches

If converting a traditional IRA to a Roth IRA results in higher taxable income, charitable contributions—particularly of appreciated assets—may help reduce the tax burden.

For those taking withdrawals from tax-deferred accounts but not eligible for QCDs, donating appreciated assets can help reduce the taxes on those distributions.

It’s also possible to donate a life insurance policy by naming a charity as a beneficiary or transferring ownership. This could result in estate tax advantages and allow for a charitable deduction, depending on how the gift is structured.

Looking Ahead and Final Thoughts

The enhanced standard deductions and charitable contribution limits under the Tax Cuts and Jobs Act are scheduled to expire in December 2025. After that, expected tax law changes in 2026 could alter the landscape of charitable giving. Staying aware of legislative updates and refining your giving approach accordingly can be beneficial.

ConocoPhillips employees aiming to align financial management with philanthropic intent may want to incorporate some of these strategies into their broader financial plan. Consulting with a tax advisor and reviewing tools like DAFgiving360 can provide deeper clarity and structure to your charitable approach.

A developing trend among retirees includes the use of annuities with a charitable giving rider. These products can provide a reliable stream of retirement income while continuing support for chosen charities after the annuitant passes—offering thoughtful tax alignment.

Think of your charitable strategy as a carefully prepared gourmet meal: your retirement assets are the ingredients, and your charitable decisions are the techniques that enhance the flavor. Together, they help you support meaningful causes with greater intent and precision.

Featured Video

Articles you may find interesting:

Sources:

1. Sheedy, Rachel L. “Charitable Giving Strategies for Retirees.” Kiplinger , May 2023, www.kiplinger.com .

2. Guina, Ryan. “How to Donate Appreciated Stock and Save on Taxes.” Forbes , 19 Feb. 2024, www.forbes.com .

3. Kagan, Julia. “Qualified Charitable Distribution (QCD).” Investopedia , 28 Nov. 2023, www.investopedia.com .

4. Saunders, Laura. “Using Roth IRA Conversions to Boost Charitable Impact.” Wall Street Journal , Mar. 2023, www.wsj.com .

5. Benz, Christine. “A Charitable Strategy Using Annuities.” Morningstar , Apr. 2024, www.morningstar.com .

How does the retirement process at ConocoPhillips provide guidance to employees in selecting the most beneficial form of payment? In what ways can employees utilize available resources to maximize their understanding of the pension options offered by ConocoPhillips?

The retirement process at ConocoPhillips provides employees with various resources to guide them in selecting the most beneficial form of pension payment. Employees can access the "How to Choose the Best Form of Payment" link on Your Benefits Resources™ (YBR) to learn more about their options and determine what works best for their financial situation(ConocoPhillips_Your_Ret…).

What steps must be completed by employees at ConocoPhillips to ensure they initiate their retirement process accurately and avoid any delays? How crucial is the timing of these steps in determining the Benefit Commencement Date (BCD)?

Employees at ConocoPhillips must initiate the retirement process by requesting their pension paperwork 60-90 days before their Benefit Commencement Date (BCD). Timing is crucial, as missing deadlines may delay the BCD and associated payments. Completing all steps on time ensures that the retirement process flows smoothly(ConocoPhillips_Your_Ret…).

Given the complexities associated with the lump-sum pension payment option at ConocoPhillips, what considerations should employees take into account before electing this choice? How does the current interest rate at the Benefit Commencement Date impact the lump-sum amount?

Before electing a lump-sum pension payment, ConocoPhillips employees should consider the current interest rate at their BCD, as it directly affects the lump-sum amount. A higher interest rate typically reduces the lump-sum payment, making timing and rate awareness critical(ConocoPhillips_Your_Ret…).

In what ways can ConocoPhillips employees ensure their Pension Election Authorization form is completed correctly to facilitate timely pension payments? What are the implications of not adhering to the required notarized consent for married participants?

Ensuring the correct completion of the Pension Election Authorization form is vital for timely pension payments. For married participants, notarized spousal consent is required, and failure to provide this could result in delays or issues with payment processing(ConocoPhillips_Your_Ret…).

How does choosing direct deposit for pension payments at ConocoPhillips streamline the retirement process for employees? What should employees know about setup and changes regarding direct deposit after initiating their pension benefits?

Choosing direct deposit for pension payments simplifies the process for employees at ConocoPhillips, as it enables automatic payments to their bank account. Employees can set up direct deposit during their retirement process or update it at a later time(ConocoPhillips_Your_Ret…).

For employees considering rolling over their lump-sum pension payment from ConocoPhillips, what procedures should they follow to ensure compliance with IRS regulations and to avoid tax penalties? How can effective planning influence the success of this rollover?

Employees electing to roll over their lump-sum pension payment must follow specific IRS regulations to avoid tax penalties. Effective planning, such as obtaining rollover paperwork and adhering to IRS rules, ensures compliance and smooth fund transfer(ConocoPhillips_Your_Ret…).

What resources does ConocoPhillips provide for employees to calculate and project their retirement income? How can these tools empower employees to make informed decisions regarding their future financial security?

ConocoPhillips provides employees with tools such as the "Project Retirement Income" feature on YBR, empowering them to calculate and project their retirement income. These resources help employees make informed decisions about their financial future(ConocoPhillips_Your_Ret…).

How do deadlines play a pivotal role in the benefits process for retiring employees at ConocoPhillips, and what specific dates must be adhered to in order to avoid payment delays? Can you provide examples of consequences resulting from missed deadlines?

Deadlines are critical in ConocoPhillips' retirement process, as missing them can delay pension payments. For example, requesting pension paperwork after the 15th of the month can delay the BCD by a month, affecting the pension payout date(ConocoPhillips_Your_Ret…).

What are the added advantages for employees at ConocoPhillips who actively seek assistance or information from the Benefits Center during their retirement planning? How can this proactive approach enhance their overall retirement experience?

Employees who seek assistance from the Benefits Center during their retirement planning benefit from personalized guidance. This proactive approach ensures that they fully understand their options and deadlines, enhancing their overall retirement experience(ConocoPhillips_Your_Ret…).

How can employees at ConocoPhillips contact the Benefits Center to receive personalized assistance in navigating their retirement options? What specific resources and support can they expect when reaching out for help?

ConocoPhillips employees can contact the Benefits Center by calling 800-622-5501 or accessing YBR online. The Benefits Center provides personalized assistance and guidance, helping employees navigate their pension options effectively(ConocoPhillips_Your_Ret…).