This year is like no other, but it is still the time of year when you might be thinking about a year end gift, exploring your tax planning, and stretching to help a cause that is dear to your heart. IECF created a cheat sheet for different kinds of year end gifts to help!
Check out five charitable giving strategies to consider as you plan your year-end giving.
Cash is the most direct way to make a gift to support your favorite charity. With the recently passed CARES Act, there are new opportunities for giving that can only be used for this year, 2020.
Another way to give are gifts of appreciated assets such as publicly traded stocks and bonds. By transferring your stock to IECF you will benefit from an income tax deduction and pay no federal or state capital gains taxes on the transfer. The amount deducted can be up to 30% of your adjusted gross income (AGI).
You can also contribute complex and illiquid assets; such as private company stock, restricted stock, real estate, alternative investments, or other long-term appreciated property—directly to a charity.
You can make a Qualified Charitable Distribution (QCD) from an IRA. A QDC allows the owner of the IRA to transfer or “rollover” directly to a qualified charity, like IECF, any amount up to $100,000. QCD funds can’t provide an income tax deduction but they will not be taxed to the IRA owner.
Making a gift of your unneeded or obsolete life insurance policy can provide a charitable income tax deduction and reduce your taxable estate.
Before undertaking any of these giving strategies, you should consult your legal, tax, or financial advisor. Each of these strategies represents a tax‐advantaged way for you to give more to the charities you care about.
For more information about charitable giving, please contact our Charitable Giving Team at 951-241-7777.