As we approach the end of the year, many people are thinking about how to lower their taxes with tax advantaged giving.
This is the time every year when many people add charitable giving to their busy to-do list. Year-end giving comes with great benefits, so now is a good time to refresh your memory on some of the options available and their advantages. This includes tax-smart gifts as well as strategies to once again enjoy the full tax benefits of itemized deductions.
Please consider the following:
Writing a check or using your credit card are among the simplest ways of making a gift to the Society of Saint Pius X (SSPX). Your cash gift is tax deductible if you itemize deductions. Due to the new tax law of 2018, many donors no longer itemize their deductions, and as a result, may not realize tax benefits from their charitable contributions. However, strategic “bunching” of charitable gifts can maximize these tax benefits. Bunching is a giving strategy designed to maximize tax benefits by making gifts for multiple years in one tax year. By front-loading several years of charitable donations into a single tax year, you can once again realize the tax benefits from itemizing deductions.
Giving Appreciated Securities.
When you donate appreciated stocks, bonds, and mutual funds you have owned for at least one year, you can receive a double tax benefit. You can deduct their full fair-market value, and the added benefit of avoiding the capital gains tax that you would owe were you to sell the securities and make your gift from the proceeds. As long as the gift goes directly to the SSPX, you will experience considerable savings. Most gifts of stock can be made easily via electronic transfer.
IRA Charitable Rollover.
Also known as a Qualified Charitable Distribution, (QCD), it allows as much as $100,000 from a traditional IRA or Roth IRA each year to be given directly to the SSPX. It is a distribution that will count as part of your required minimum distribution (RMD) for the year and will not be included in your adjusted gross income. A QCD gift can be a great way to avoid paying taxes on your RMD while supporting the SSPX. Importantly, the tax benefit survives even if you are among the 90% of taxpayers who don’t itemize deductions. To qualify, you must be a least 70 1/2 at the time of the gift, and the QCD assets must be transferred directly to the SSPX from the IRA custodian, such as a bank or mutual fund company.
Donor Advised Fund (DAF) Distribution.
DAFs are the fastest-growing charitable giving vehicle in the United States and function like a charitable savings account. You can give a large sum to establish the fund and then make smaller distributions to the charities you care about, like the SSPX. DAF grants are very popular at year-end since it makes your giving easy.
Please note: Because we are not qualified to provide tax or legal advice, please review these recommendations with your own tax or legal advisor, who is more familiar with your specific situation and in the best position to help you determine what would be most appropriate for you. We are available to work with you and your advisers as you consider gift options.
If you have further questions, we are more than happy to assist! Just fill out the contact form on our donation page.
Thanks for all that you do to support the Society of Saint Pius X,
Chief Development Officer
Society of Saint Pius X
11485 Farley Road
Platte City, MO 64079