Caregiver tip: Take your 'energy temperature'
May 6, 2024
“Giving back to help others has always been a priority for my wife Anne and me,” says Tate Greenwald, a former member of the ERS Board of Directors. We have both been active volunteers with ERS for years and believe strongly in supporting the organization financially as well.” The couple now has taken the opportunity to give even more, with a tax-free gift from their IRA.
“We were able to give more than we might otherwise and feel great knowing our gift is making an impact on the older adults served by ERS,” says Tate.
Read below to learn more about making a gift through your IRA or other giving vehicles.
A popular and enduring planned gift is a simple charitable bequest, which is a gift made through your will. Bequests are popular because they give you the opportunity to leave a lasting legacy. When you make a charitable bequest, you retain full use of your property during life, so there is no disruption of your lifestyle and no immediate out-of-pocket cost.
To make a bequest, simply designate that part of your estate passes directly to us. Since a charitable bequest can take many forms, you have remarkable flexibility in how you make this designation. For example, you can leave...
You can also state exactly how you want your bequest to be put to use. Or, you can provide an unrestricted bequest that can be used whenever and wherever it's needed most. Most importantly, you can change your bequest whenever you choose—you remain in complete control of the planning process.
Contact us for more information about making a bequest.
Gifts of long-term, highly appreciated securities are the most common type of outright property gift. Donors typically give individual stocks, but bonds or mutual fund shares are also attractive gift options. Outright gifts of securities can be made quickly, and these gifts let you do more with your gift because of the very attractive tax benefits.
A charitable gift of appreciated securities held long term is not considered a sale and does not generate any capital gains tax, no matter the amount of the gain. To encourage gifts of appreciated property, Congress provides a valuable tax incentive—a charitable income tax deduction for the full fair market value of the securities (including the gain) for itemizers.
For example, if you give shares of stock worth $10,000, you can deduct the full amount on your income tax return (subject to certain income limitations) even if you bought the stock for $1,000. In addition, when we sell the stock, we keep every penny of the proceeds since we are a tax-exempt organization.
Note: Be sure to transfer the stock directly to us. Do not sell the stock, or you will lose this important tax advantage.
Contact us for more information about gifts of securities.
A qualified charitable distribution from an IRA is a good way for IRA owners age 70½ and over to support our work. It’s easy to do.
A new QCD option to consider
IRA owners age 70½ or older may also choose to make a one-time, tax-free IRA distribution of up to $53,000 (in 2024) to create a new charitable gift annuity (CGA) or a charitable remainder trust (CRT). The distribution counts toward your RMD if one is due. This is an option worth considering if you want to make a gift from your IRA and establish a new income stream.
Note that spouses may contribute up to $53,000 each (in 2024) from their individual IRAs into a single CRT or a joint-life CGA. Payments may only go to you and/or your spose.
Please contact us to learn more about planning and completing a qualified charitable distribution, or click here to calculate your required minimum distribution.
Life insurance is also an excellent tool for accomplishing philanthropic goals while realizing other important financial objectives. Life insurance may even allow you to make charitable gifts you would never have dreamed possible.
Making a gift of life insurance is quite simple. If you are the insured policy owner, you simply transfer physical possession of your paid-up policy to us and file an absolute assignment or transfer of ownership form with your insurance company. Your company will then send a letter to us showing that we are the sole owner of the policy.
Emmett owns a $100,000 life insurance policy with a cash value of $40,000. No further premiums are due, and he no longer needs the coverage. He can ensure that we will receive $100,000 at his death by making us the beneficiary, or he can transfer ownership of the policy to us now. When he transfers ownership, Emmett receives an itemized charitable deduction equal to the lesser of his cost basis or the policy's replacement value.
Contact us for more information about gifts of life insurance.
Many donors use qualified retirement account assets in their charitable gift planning. This is an easy gift to make and has distinct planning advantages.
Retirement account assets left to loved ones may be subject to higher taxation than other types of assets. By using retirement account assets to make a gift (and selecting alternative assets to leave to family members), you may be able to reduce taxes that otherwise would be imposed on those assets and leave more to your intended beneficiaries.
Contact us for more information about gifts of retirement account assets.
Make an irrevocable gift to a fund maintained by a charitable organization and enjoy an income tax charitable deduction for the full amount of the gift. As the name implies, you can advise the fund regarding distribution; however, you may not place material restrictions on the fund.
Make a gift with a retained right to income. A charitable remainder trust can provide an income for you and/or your beneficiaries for life or a period of up to 20 years with an immediate and substantial income tax charitable deduction (subject to certain income limitations) for itemizers. You may potentially avoid current capital gains taxes when the trust is funded with long-term appreciated property. A charitable remainder trust can help reduce your estate to avoid or reduce death taxes, while also lowering probate costs, taxes, and other estate transfer expenses.
Create a trust that can be revoked or changed during your lifetime that directs the disposition of your assets, including charitable gifts. A revocable living trust can minimize the cost and delays associated with probate, facilitate asset transfer, provide privacy and, unlike a will, ensure asset management continuity in the event of disability.
Create a charitable lead trust that benefits us for a number of years, returns assets to your beneficiaries, and minimizes taxes.
Donate a home and retain the right to live in the property for the rest of your life. Qualify for a current income tax charitable deduction for the value of our remainder interest in the home.
A donor who gives us appreciated real estate can completely avoid capital gains tax on the appreciation and qualify for a charitable income tax deduction for the full fair market value of the property.
Transfer appreciated assets (stocks, bonds) held for more than one year directly to us and enjoy an income tax charitable deduction for the full market value if you itemize. No capital gains tax is due on the appreciated value.
Donate closely held stock. You enjoy a charitable deduction equal to the appraised value of the stock with no capital gains tax due.
Donate gift property that can be used for our exempt purposes, and qualify for an income tax deduction for the full fair market value.
Contact us for more information about additional methods of giving.
