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Three Ways to Help your Favorite Charity and Yourself

For many of us, supporting our favorite charities is an important way of helping others and advancing causes that we believe in. Did you know that there are also many ways you can personally bene?t from such acts of generosity?

Most important, of course, is the satisfaction you get when helping a charity that is dear to your heart. But your gifts, when planned smartly, can also help you – even financially. Here are just three examples: Gifts of Appreciated Stock or Mutual Funds Gifts of appreciated securities, when held longer than one year, allow you to make a gift at a fraction of its cost. Let’s say you bought XYZ stock a few years ago at $25 a share and it’s now worth $50 a share. If you transfer those shares directly to your favorite charity, your gift is valued at its current value rather than what you paid for it. And, as long as you transfer the gift directly to charity, you avoid paying tax on the capital gain. Charitable Gift Annuities A charitable gift annuity helps a charity to achieve its future goals while providing you (and/or someone you love) with an income stream for life. The rate of payment is based on your age and never changes. (The older you are, the higher the payout rate). Payments are partially tax-free for a period of years, and a charitable income tax deduction is also available if you itemize your deductions. You need to keep in mind that such a gift is irrevocable, but so is the charity’s obligation to pay you for life. IRAs Gifts through your IRA provide yet another opportunity. Possibility 1: if you are age 70 ½ or older, you can direct up to $100,000 a year to charity from your IRA. Although you won’t receive a charitable tax deduction, neither will such a distribution count as taxable income. (Keep in mind that the distribution must go directly from one’s account to the charity.) Possibility 2: make charity a full, partial or contingent beneficiary of your IRA upon your death. IRA funds left to loved ones can be heavily taxed, but giving these funds to charity can allow you to direct other assets to loved ones, with potentially favorable tax treatment. The Society of the Little Flower would be happy to provide additional information about these or other ways to help both your favorite charity and yourself. Elizabeth Wesel in our Special Gifts office can be reached at 888-996-1212 or Editor’s Note: This article is intended to provide general information and is not meant to provide legal, tax or ?nancial advice; always consult a trusted professional about these or other giving opportunities.

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Illinois - Chicago North/West Suburbs & DuPage County