When people think of charitable giving, they often focus on cash donations or yearly contributions. However, there are many impactful and financially savvy ways to give. (You should talk your financial advisor before utilizing a different way to make your gift).
People are finding that there are ways to make gifts and realize a bigger impact while lessening their taxable burden. Here are several powerful ways to expand your impact.
- Gifts of stock are a smart way to give. Donating appreciated stock directly to a charity provides a tax benefit by eliminating capital gains taxes and securing an itemized deduction for the asset’s full market value. This strategy allows you to realize a bigger impact to a cause compared to selling the stock first and donating the cash proceeds.
- Donor Advised Fund (DAF), Making a gift through a Donor-Advised Fund (DAF) allows you to claim an immediate, maximum tax deduction today while distributing the money to charities over time. It acts like a personal charitable savings account, allowing your contributions to grow tax-free until you choose which organizations to support.
- IRA Qualified Charitable Distribution and Required Minimum Distributions. This is an impactful option for people over 70.5 or older looking to enhance their charitable giving.
Support Your Local Parish Through Your Qualified Charitable Distribution
If you’re 70½ or older, you have a special opportunity to support your church or favorite charity through Qualified Charitable Distributions (QCD) from your IRA. By making charitable gifts directly from your IRA, you can potentially lower your tax liability while making a meaningful contribution.
- IRAs and Seniors – QCD
– People 70.5 and older can give up to $111,000 annually from an IRA.
– Gifts can count as part of your Required Minimum Distribution, helping you avoid taxation if used for charitable gifts and any penalties for not taking the required distribution each year, starting at age 73.
– These charitable distributions don’t count as income and aren’t subject to taxation. - Current Gifting Opportunities
– You can request annual contributions from your IRA directly to the church, benefiting both you and St. Paul’s Maumee. - Legacy Gifting Opportunities
– Consider making one-time or annual IRA distributions.
Always check with your financial advisor before taking advantage of one of these smart giving strategies.
If you would like to know more about how you can make a gift, contact the church office.