Gifts that May Reduce Your Taxes
There are a variety of ways to continue our compassionate support for Big Brothers Big Sisters of Central Ohio that may help reduce income taxes, estate taxes and capital gains taxes.
You can use your Required Minimum Distribution (RMD) to make a qualified charitable distribution (QCD) from your IRA directly to Big Brothers Big Sisters of Central Ohio
Here's how it works:
- You must 70 ½ years or older
- An individual may transfer up to a total of $100,000 per year and a married couple may give up to $200,000
- Your gift must be transferred directly from the IRA account to Big Brothers Big Sisters of Central Ohio
- Your gift is a transfer of funds from your IRA, so it does not create taxable income for you and is not considered a charitable tax deduction
- The transfer of funds counts towards your annual Required Minimum Distribution* from your IRA
*Congress has waived the annual Required Minimum Distribution from IRA Accounts in the year 2020 as part of the CARES Act in response to COVID-19. Please consider seeking advice from your financial advisor or tax professional to understand how recent changes to laws governing retirement plans may impact you and your charitable gift.
Retirement plan gifts are a popular gift option for many Big Brothers Big Sisters supporters. Because retirement plans are taxed differently than most assets, they may actually become a tax liability.
- Naming Big Brothers Big Sisters of Central Ohio a beneficiary of your retirement account can be an attractive option for leaving a legacy and reducing income and possibly estate taxes for your loved ones
- Income taxes to your beneficiaries on retirement assets can be as high as 37%. This means, for example, that a $100,000IRA will be worth only $63,000 when it gets to your loved ones
- Naming Big Brothers Big Sisters of Central Ohio as a beneficiary of your retirement assets generates no income taxes. Big Brothers Big Sisters of Central Ohio is tax exempt and eligible to receive the full amount, bypassing any income taxes. This means, for example, that a $100,000 IRA given to the Humane Society will be worth the full $100,000
A gift of life insurance is an affordable way to secure tax savings during your lifetime while continuing your support Big Brothers Big Sisters of Central Ohio.
- You can give a significant gift from disposable income at a fraction of the value
- Tax savings can be immediately realized
- Your donation could reduce final taxes of your estate
- Insurance gifts pass outside of the estate
When you transfer ownership of real estate to Big Brothers Big Sisters of Central Ohio, you can reduce your taxes by deducting the appraised value of the property from your income tax liability and by avoiding capital gains tax liability. This kind of gift also removes the property from your estate and relieves you of any future management worries. If interested in this type of gift, please contact Ryan Love at firstname.lastname@example.org to discuss further.
By giving stock bonds, and mutual funds that have appreciated in value, you may receive a charitable income tax deduction for the full market value of the stock (up to a maximum of 30% fo your adjusted gross income) and avoid paying the capital gains tax on any increase in the value of the stock.