A Culture of Philanthropy – Planning for year-end giving
As we are more than halfway through 2023, nonprofits and donors alike start planning for making and receiving donations for the end of the year RIGHT NOW. Over the few months we will provide a few suggested tips to maximize your giving, make an impact on your community, reduce your taxes, and avoid stressful year end processes. And, these can be done NOW! You don’t have to wait until the end of the year. You can avoid the holiday rush and issues with people on vacations, slow mail service, and other things that can happen unexpectedly by planning now and making your gift between now and Thanksgiving!
Have you turned 70 years old? And do you have a traditional IRA or 401K plans? When you turn 72 years old (or 70 ½ if you were born before 7/1/1949), you will be required to take distributions from these retirement plans (not required with a ROTH IRA). Money that went into these traditional savings accounts at the time of deposit were tax deferred, again not with a ROTH IRA. You will be required to withdraw a minimum amount, dependent on your age and your savings, each year. This is referred to as a Required Minimum Distribution or “RMD.” At the time you withdraw these funds, they will be taxed as income UNLESS you donate the funds to a charitable organization, per the IRS. It is a wonderful opportunity to make a significant gift to your favorite charity, including ADL, and avoid any additional tax burdens.
Did you know that you can gift stock and avoid a capital gains tax? Stock can be gifted to ADL through your broker. Regardless of what your stock basis is, and the capital gain associated with the stock sale, you will NOT pay any tax on the sale of that stock if it is donated to ADL or a qualified charity. You will be recognized by ADL for the amount at the time of the sale as a donation. This can be a game changer for you and ADL!
If you missed the last month’s Messenger article on Planning for year-end giving – Part 1 (regarding IRA Minimum Required Distributions ) please click here and stay tuned for next month’s tips on Donor Advised Funds.
As always, please consult your accountant or financial advisor, for what’s best for you. If we at ADL can assist you and/or provide more information, please contact Susie Moss, Regional Director of Development at mountainstates@adl.org. We appreciate you considering a year end gift to support the work we do to ensure justice and fair treatment to all!