Gifts that charities may use immediately
There are many giving strategies that can help you to increase your impact on charities’ important initiatives while also building charitable tax advantages.
Charitable IRA rollover
If you have an Individual Retirement Account (IRA), you’re likely familiar with the requirement that you must withdraw a certain percentage from your account beginning at age 73. Supporters aged 70 ½ and better may consider an IRA charitable rollover (up to $108,000) to a qualified charity and not have that transfer count towards their taxable income in the same year that they made the charitable gift. Charitable rollover amounts could count toward the client’s required minimum distribution.
Making a distribution from your Donor Advised Fund
A smart way to extend your generosity is to establish a Donor Advised Fund (DAF) through Everence®. A DAF is the equivalent of a charitable investment account. After you make an initial tax-deductible contribution to the account, you can recommend distributions to non-profit organizations now or in future years. Any funds that remain in the account are invested tax-free in order to grow your charitable impact over time. If you have a donor advised fund with another Foundation, now is a great time to consider a gift to non-profit organizations from your fund.
Becoming a Sustaining Donor
Monthly donors help organizations plan smarter and dream bigger. These ongoing gifts provide the reliable funding that keeps missions strong throughout the year. On average, sustaining donors give nearly three times more annually than one-time donors—and their continued support fuels growth and innovation.
Giving an appreciated asset
You can make more of an impact than you thought possible when you make a charitable gift of appreciated assets like stock, bonds, retirement assets, and real estate. In addition to receiving an immediate charitable income tax deduction, your gift of appreciated assets may allow you to also reduce capital gains taxes.
We’d love to talk more with you about smart giving options and the ways they can benefit non-profit missions. For more information, please reach out Elyse Kauffman, Charitable Consultant, at elyse.kauffman@everence.com or 717-653-6662.