Year-End Giving Considerations
Gifts of Appreciated Assets such as stocks bonds and mutual funds
When long-term appreciated assets are donated to a non-profit charity like Unity, three benefits are realized. First, Unity gains the full value of the donated stock. Second, the donor can take an income tax deduction for the full fair-market value. Third, the donor would likely avoid tax on the increased value of the asset.
Qualified Charitable Distribution (QCD)
QCDs allow each owner of an IRA, who is age 70 ½ or older, to directly transfer up to $100,000 annually from an IRA to a charity, tax-free. Keep in mind it does not qualify if you take the disbursement and then donate to the charity. It must be a direct transfer from the IRA. Such transfers are not included in your adjusted gross income for income tax purposes, removing it from taxable income and potentially avoiding the loss of other tax benefits. Since income is excluded a deduction is not allowed.
Donor-Advised Funds (DAF’s)
DAF’s provide a simplified way to manage charitable giving with a dedicated account for charitable giving. Upon transferring cash or securities to an IRS-approved donor fund, you are eligible for an immediate tax deduction. The timing of contributions may provide a tax benefit to the donor. The donor then retains the flexibility to decide the amounts and timing of distributions from the fund to charitable organizations such as Unity.
We advise you seek the advice of your tax and financial professional for how these vehicles best apply to your personal situation.
Please remember Unity during your 2021 benefits enrollment process. Many employers will provide a matching gift through your payroll charity giving or one-time charitable gift.
Contact Pam Bright for more information about supporting Unity’s missions and ministries at pbright@UnityFortMill.org or 803-547-5543.
Please remember Unity in your estate planning.
Federal Tax ID #57-0360709