Impact their Lives
Leave a Legacy
Impact their Lives
Leave a Legacy
Ways to Give Smarter
Cash, check and credit card donations represent the far majority of gifts made to most non-profits across the United States. But many people do not realize that there are other ways to support causes they love and do it in a ‘smarter’, more beneficial way for themselves.
By donating stock or other long-term, appreciated securities, the donor can avoid long-term capital gains taxes on their appreciated asset while supporting the Club members at Boys & Girls Clubs of Central Florida.
In the PDF example provided, a donor sells $100,000 in stock, pays $14,250 in long-term capital gains taxes and donates $85,750 (the net) to Boys & Girls Clubs of Central Florida. Their tax deduction will be $27,440 if they fall in the 32% tax bracket.
If the donor donated the same $100,000 in stock to Boys & Girls Clubs of Central Florida directly and did not sell the stock personally, the donor would pay $0 in long-term capital gains taxes, donate the full $100,000 to Boys & Girls Clubs of Central Florida and receive a $32,000 tax deduction!
In summary, because the donor gave the stock to Boys & Girls Clubs of Central Florida directly versus selling it and donating the net proceeds, BGCCF received the full $100,000 gift, the donor paid ZERO dollars in long-term capital gains taxes (instead of $14,250), and the donor received a $32,000 tax deduction versus $27,440. Donating stock or other appreciated securities may be a ‘smarter’ way for you to give!
If you are 70 ½ years of age and older, you can use your IRA account to contribute life-changing funds for our Club members. If you find the IRA Required Minimum Distribution (RMD) mandate a tax burden for you each year, or you regularly give cash, check or credit card to BGCCF, donating through your IRA may be a ‘smart’ move for you!
Simply, by donating funds from your IRA account to BGCCF, you will reduce your taxable income for that year. For example, if you give BGCCF a cash, check or credit card gift of $10,000 each year, you might be able to deduct this contribution on your taxes – if you can itemize on your taxes. If you give BGCCF an IRA Charitable Rollover gift directly from your IRA of $10,000 instead, you will save any income taxes on the $10,000 because it will not be considered income for that year. If you fall in the 32% tax bracket, that would save you $3,200 in income taxes for giving BGCCF the same donation amount! Giving through your IRA may be a ‘smart’ move for you!
Please note that your IRA Charitable Rollover gifts do count toward the Required Minimum Distribution (RMD) you must take from your IRA account starting at 72 years old. And you can give up to $100,000 a year from your IRA account.
Here are more details of how this simple process can work for you and save you taxes!
Please note: The IRA Charitable Rollover provision does not apply to 401k, 403b and Roth IRA retirement assets. Consult your financial advisor for more information.
Once you have created and funded a Donor Advised Fund (DAF) through a reputable company or organization, you can designate Boys & Girls Clubs of Central Florida to receive grants any time of the year from your DAF.
A Donor Advised Fund is a ‘smart’ way to give since you have already received tax benefits from the contributions you made to your DAF. In addition, any growth that occurs in your DAF is tax-free and can be given to qualified non-profit organizations like Boys & Girls Clubs of Central Florida. For these reasons, giving through your Donor Advised Fund may be a ‘smart’ move for you!
Here are more details that might be helpful to you as you issue a DAF grant to Boys & Girls Clubs of Central Florida.
Boys & Girls Clubs of Central Florida does not provide tax, legal or financial advice. These materials have been prepared for informational purposes only, and are not intended to provide, and should not be relied on for tax, legal or financial advice. You should consult your own tax, legal and financial advisors before engaging in any transaction.
IRA Charitable Rollover
Donor Advised Funds
Charitable Gift Annuity
Gifts that Pay You Income
Good vs. Bad Assets
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