End of Year Gift Planning: 2 Simple Ways to Make a Big Impact

BY: Laura Frye, Planned Giving Officer

IRA Rollover

Are you over 70½ with an IRA?  Would you like to support your charity of choice in a tax-wise way? The Charitable IRA Rollover may be just the thing…  Now that Congress has made the IRA rollover permanent, you can make thoughtful contributions to your charity of choice through your IRA year after year, satisfy your required minimum distribution (RMD), and avoid income tax you would otherwise have to pay on mandatory withdrawals. This benefit is available to itemizers and non-itemizers alike and requires only a few simple steps.  Certain rules apply, but if you meet the criteria, you can make a philanthropic gift while receiving some tax benefits in return.  Remember, you have to transfer the funds from the IRA to the charity, not to yourself first. Consult your tax advisor for more details.

Important to note:

• You have to be age 70 1/2 or older when you make the gift.
• You can give up to $100,000 from your IRA directly to a charity. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
• If you have not yet taken your required minimum distribution for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.

Donation of stock

You can make a gift to charity through appreciated assets.  By donating appreciated stock held for more than one year you can avoid the capital gain tax. Consider choosing appreciated stock with the greatest capital gain to take maximum advantage of this unique tax benefit.   Do you have stock that has lost value? By liquidating stock and donating the proceeds, you can deduct the loss in value (cost basis less current value) and derive a charitable deduction for the current market value.  As always, consult your tax advisor for more details.

Learn more

Please consult your advisor for more details or contact Laura Frye, planned giving officer, by calling 216.255.9066 or via email.