Gifts that reduce taxes
IRA “Rollover” gifts & IRA gifts by designation
IRA “Rollover” gifts allow donors, 70 ½ or older, to use IRA assets to make charitable gifts. IRA Rollover gifts are immediate distributions from a donor’s IRA account made directly to charity – that count toward a donor’s required minimum distribution or RMD. By reducing taxable income, IRA Rollover gifts can lower a donor’s tax bill and may help donors avoid Medicare high-income surcharges. And, as IRA Rollover gifts pass tax-free to qualified public charities, 100% of your gift to Catholic Charities can be used to help our brothers and sisters in the Bay Area.
As retirement assets are taxed differently, IRA’s left to loved ones can actually become a tax liability. Leaving some or all of your IRA to a good cause, like Catholic Charities, and other, less tax-vulnerable assets to family or friends can reduce this liability for your loved ones. Simply ask your plan administrator for a beneficiary designation form and include Catholic Charities to receive a specific percentage of your account or as a contingent beneficiary.
Gifts of appreciated stock
When you donate appreciated stock, bonds or mutual funds you’ve owned for more than a year, you’ll receive a tax deduction for the fair market value and avoid capital gains tax. Your deduction may provide you with additional tax savings if you itemize.
If you use appreciated stock to fund a charitable gift annuity or charitable trust, you won’t owe capital gains tax when those assets are sold – and you’ll receive an immediate tax deduction – while creating a stream of income for yourself and/or your loved ones.