As you prepare your charitable giving, we understand that there is much to consider. So we certainly hope that Women in Philanthropy continues to be on your list!
The following are some giving options that take financial and tax implications into consideration. This is for informational purposes only and should not be considered professional advice or recommendations. Please discuss your giving options with your financial advisor, accountant, or estate planning professional.
Cash – This is the simplest form of charitable giving as your tax deduction is equal to the amount donated. This includes cash, check, or credit card. When using your credit card, please be aware that we incur a fee that reduces the amount we have available for operating expenses. We do not reduce the amount available for grants.
Long-Term Appreciated Securities – This is a tax-efficient way of giving 1) since you are not the one selling, there are not capital gains taxes and 2) if purchased over 12 months ago at lower than the current value, your tax deduction is equal to the fair market value at the time of the transfer.
Qualified Charitable Distributions (QCD) – An IRA distribution directly to a 501(c)(3) is not reported as taxable income, therefore, the donor pays no income tax on the full amount. Regular IRAs have Required Minimum Distributions (RMD) after age 72. Please check with a professional concerning dollar limits and your personal RMD for any given year.
Donor Advised Fund (DAF) – A DAF is a type of charitable giving where you 1) donate a non-refundable amount to a nonprofit organization e.g., the Community Foundation of the Lowcountry, 2) receive an immediate tax benefit, 3) benefit from growth on a tax-free basis, and 4) use this fund to support IRS-qualified charities, e.g., Women in Philanthropy.
All the best as you do your year-end giving planning!
