SMART WAYS TO GIVE
Gift of Stock
Get an extra tax break from appreciated stock. Giving appreciated stock or mutual funds to charity gives you an extra tax benefit: You can deduct the current value of the investment as a charitable contribution if you itemize, and you’ll avoid paying capital-gains taxes on the profits. (You’d owe capital-gains taxes if you sold the stock first and then wrote a check.)
If it’s a losing stock, it’s better to sell it first and give the cash. You’ll still be able to deduct your charitable donation if you itemize, but you’ll also be able to take a capital loss when you sell the investment.
Donors age 70 1⁄2 and older can make tax-free charitable gifts of up to $100,000 per year directly from an IRA to AdkAction or any qualified charity.
Here’s how it works: After the age of 701⁄2, taxpayers are required to take annual distributions from IRAs. Distributions are included in their adjusted gross income and subject to tax. However, if you make a gift directly to a charitable organization from your IRA, the amount of the gift is excluded from your adjusted gross income, but the distribution sill counts toward you required minimum distribution.
Beneficiary Designations – Many people contribute to annual funds but also name a charity as a beneficiary of their IRA, life insurance policy, checking or savings account. No cost or professional services are involved. Only a signature is required. You can designate an amount or percentage as the gift, and you can name multiple charities as beneficiaries. Then, the designated amount in an account transfers directly to charity and minimizes or avoids taxation. By leaving gifts to charity, you often provide more to your heirs. You can join AdkAction’s Legacy Society when you let us know that you have chosen one of these options.
There are also other ways to give that allow you to be generous and provide for your family, including options that provide you income in retirement.
For more information, please contact:
Brittany Christenson, Executive Director
(518) 593-8753 or Brittany@adkaction.org