Ways of Giving that May Help You Give More and Save More
The Cancer Support Community (CSC) remains forever grateful to our donors who care deeply about ensuring that no one faces cancer alone. In recent conversations, some have told us that they were happy to learn about options beyond gifts of cash that might allow them to give more, make an even bigger impact, and enjoy certain tax benefits. We thought all our donors might appreciate knowing about these options, so we have described a few below.
Consider donating appreciated stocks and bonds
You may have securities that have performed well and appreciated in value, even during this tumultuous time. Giving gifts of appreciated securities not only allows you to claim a charitable deduction but may also help you avoid capital gains taxes. You can make larger donations than would be possible using post-tax proceeds, and you can deploy the cash you would have donated towards income-generating activities, such as buying more securities.
You can even execute a charitable swap, where you donate a favorite security that appreciated and immediately buy the same security with the cash you would have donated. Not only will you receive a charitable deduction, you also may avoid capital gain taxes and you get to maintain your preferred security in your portfolio, potentially at a stepped-up basis.
Consider giving Qualified Charitable Distributions from your Individual Retirement Accounts
If you are 70 and a half or older, you have the option to give up to $100,000 in Qualified Charitable Distributions (QCD) to charity tax-free every year. Rather than pay income taxes on distributions from your Individual Retirement Account (IRA), why not make your charitable donation using those funds? This opportunity is limited to IRAs and does not apply to other retirement savings accounts (e.g. 401k, 403b, SIMPLE, SEP or profit-sharing plans). QCDs must be given directly to the charity to receive the tax benefit. They cannot be given to private foundations, donor advised funds, charitable trusts, or charitable gift annuities.
Give from your Donor Advised Fund
If you have created a donor advised fund, you have already received the charitable deduction for the value of your contribution at the time of your contribution to the fund. Since you created your fund to make future charitable gifts, consider using those funds or assets first before turning to other assets.
If you have questions about any of these options, we are here to help you. Your mission to support cancer patients and caregivers is our mission - and we will make it as easy as possible. As always, thank you for your support.
Please contact Karim Merchant, Vice President of Strategic and Major Giving,
firstname.lastname@example.org or at 202-650-5365, to discuss the various ways that you can support CSC.
In case you need it, our Federal Tax ID Number is 95-4163931.
Please note that CSC is not authorized to provide tax or financial planning advice. We hope that the information included in this blog will allow you to have fruitful conversations with your tax and financial advisors.