Additional Ways to Give
Tax-wise Charitable Planning Strategies
The end of the year is fast approaching and with it so is your opportunity to reduce your taxes.
There are a number of charitable planning strategies that can help you lower your income and taxes this year. Here are some ways you can shift tax dollars to charitable dollars and support the mission of The Foundation. Always consult with your tax advisor.
- IRA Charitable Rollover – Persons age 70-1/2 or older can rollover up to $100,000 from their IRA directly to a qualified charity, like The Foundation. You can also count this gift against your required minimum distribution, which lowers your income and taxes. Also, by designating “The Foundation” as beneficiary of all or part of your IRA, the full value of the gift is transferred to The Foundation tax free at your death and your estate receives a charitable deduction.
- Outright Gift of Asset – Make a gift of stock, real estate or other asset, avoid paying capital gains tax on the transfer and receive a tax-saving charitable deduction.
- Donor Advised Fund (DAF) – Make a tax-deductible gift to a DAF, which gives you the ability to make grants to your favorite charities this year and in future years.
If you would like further information on any of these end-of-the-year planning strategies, please contact us at 815-338-4483. We can help you create a plan that meets your needs and goals.
How to Make Your Stocks Work for You
If you own appreciated stock and are looking for a way to avoid owing capital gains tax, consider making a gift of stock to help further The Foundation’s mission. Your gift could make an impact on the lives of our friends and neighbors in McHenry County.
When you make a gift of an appreciated asset, such as a stock, to The Foundation, you can benefit in the following ways:
- You may receive an income tax deduction for the value of the donated stock.
- You can avoid capital gains tax, regardless of how much your stock as appreciated.
- You will support the mission of The Community Foundation for McHenry County.
Please contact us if you need assistance with making a stock transfer. We can provide you with transfer instructions to make your gift-giving easy and effective.
Smart Use of your IRA
Donors with assets in retirement accounts can take advantage of a tax strategy known as a Qualified Charitable Distribution, sometimes referred to as an IRA charitable rollover. The rollover law allows taxpayers who are required to withdraw money from their IRAs to make a transfer directly to charity. Because the rollover satisfies your required minimum distribution (RMD), making an IRA rollover gift to The Foundation could reduce your income taxes.
The IRA rollover is a great way for you to help support your favorite causes. While you won’t receive an income tax deduction for a rollover gift, you also won’t pay any income tax on the transfer. Check with your tax advisor or contact us to learn more about how you can use your RMD for good and lower your taxes.