Property, Stocks, Bonds, and Mutual Funds
Markets have been volatile, but the S&P 500 is up around 20% this year and the value of residential property has increased significantly in many locations. Making gifts of appreciated property and investments directly to a charity is a great way to maximize impact and minimize taxes. Donating appreciated property and investments generally result in a charitable contribution deduction for the fair value of the donated asset avoiding income or capital gains tax above the purchase price or tax basis if one were to sell the asset and make a cash donation.
Gifts from Retirement Savings
Giving from retirement accounts is often an overlooked charitable giving option.
- Gifts can be made from IRA's and other retirement plans.
- Individuals, 70½ and older can direct up to $100,000 from an IRA per year through a Qualified Charitable Deduction (QCD).
- In addition, individuals 72 and older are required to take a Required Minimum Distribution (RMD) from their retirement accounts each year. Many people are not aware that they can use this as a Qualified Charitable Deduction.