When it’s time to donate to a charity or cause, do you think first about the cash available in your bank account? Whether starting a Fund or making a donation, we encourage our donors to think about appreciated assets.
Gifting these items not only allows you to make a more impactful gift but also can provide you with a tax benefit. Below is a chart of just some of the ways to give and when you might use these options.
Benefits of Gifting Assets (you can also view this document here as a PDF)
| DONATION | PROS | CONS |
| Cash | Liquid asset
Easiest to transfer |
Least tax-advantage
Reduces spending money
|
| Securities | Can deduct full Fair Market
Value of stocks Avoid capital gains tax Relatively easy to transfer to charity |
Only tax-advantageous
when gifting appreciated stocks (those that have Increased in value since purchased)
|
| IRA Rollover | Donors age 70 ½ can avoid
Income tax on required minimum distributions by gifting up to $100,000 per person directly from their IRA to charity
|
No income tax
deduction, simply avoidance of additional taxes |
| Real Estate or
Tangible Property |
Can, generally, deduct full
Fair Market Value of the Property No need to deal with the sale of property Relatively easy to transfer ownership to charity
|
Charity must be willing
to assume costs/risks related to selling the property
|
| Bequest in your Will | Complete avoidance of
both capital gains and estate taxes |
Donor will not see
the fruits of the gift during his/her lifetime
|
| Naming a charity
as a Beneficiary of your Life Insurance, Retirement Account(s) or non-qualified annuities |
Easy to do – simply add the
charity to beneficiary form 100% of IRA gift will transfer to the charity, while gifts of IRA to heirs will be taxed
|
Donor will not see
the fruits of the gift during his/her lifetime |
Being charitable can also make sense financially. Think strategically about your assets and involve your tax advisors in your giving. In addition to the assets listed above, the Community Foundation can accept as a donation nearly any type of asset for which a value can be established.
We at the Community Foundation pride ourselves on turning unique situations into extraordinary accomplishments. Contact the Community Foundation and let’s make a difference in our community, now and forever. Visit www.clevelandbradleyfoundation.org or contact Lisa Geren.
