Tax Benefits to Giving

Three Ways that Uncle Sam Can Work with You on Your Gift to Woodlands: 

#1  I am 70-1/2+ years old and I have an IRA from which I take distributions:Did you know that the IRS allows you to send up to $100K/year directly from your IRA to a charity or charities (must be registered 501c3)? These Qualified Charitable Distributions* are not included in your gross income for tax purposes and can be counted toward your annual required minimum distribution from the IRA.

#2  I own publicly traded securities that have appreciated over time: Consider two ideas:

  • Give your securities directly:
    Did you know that you can give securities with long term gains directly to Woodlands without owing taxes on the capital gains AND you can deduct their full fair market value?** We can help you transfer your shares electronically to Woodlands
  • Consider a Donor Advised Fund:
    A Donor Advised Fund is a charitable giving vehicle.  You can fund it with contributions of cash or even with securities -- including those with unrealized long term capital gains.

    Your contribution to your Donor Advised Fund is a charitable donation for tax purposes.**  Subsequent “granting” to your chosen charities can take place whenever you’d like (including in different tax years than your contribution, which allows you to separate your charitable deduction from your ultimate granting to a charity or charities).

#3  I would love to give generously to Woodlands, but I might need my assets.  I would happily leave a bequest after I pass away if I’m fortunate enough that my money outlives meAny bequest you leave to Woodlands will not be counted toward your taxable estate. Before employing these strategies, check with your financial or tax advisor.

 

Contact Kathleen Reidy '77, Director of Development at kreidy@woodlandsacademy.org for more information.

* Qualified Charitable Distributions must be made directly from an owner’s IRA to the registered 501c3 to be avoid being included in the IRA owner’s gross income. 

** Those who opt to use the standard deduction on their tax return may not benefit from a charitable deduction.  Also, some who itemize their deductions may only partially benefit from itemizing their donation.