As you consider your charitable year-end giving and tax planning for next year, you may want to consider options that will allow you to receive tax benefits from your charitable giving:
- Gifts-in-kind: Traditionally, cash gifts are an easy way to support your favorite charity. For those who itemize their deductions, they may deduct their cash gifts up to 60% of their contribution base, (usually your AGI or adjusted gross income). For example, a couple with $100,000 in income may give and deduct up to $60,000 this year. (If you wanted to give more than 60% of your AGI, you may be able to carry forward and deduct the gift amounts during the next five years.)
However, from a tax perspective, giving an outright gift of appreciated assets (like stocks and real estate ) makes a lot of sense. You can avoid paying capital gains tax and receive a tax-saving charitable deduction while supporting our work. - IRA Rollover: If you are 70.5 or older, you can rollover funds from an IRA (up to $105,000) to a charity without taxes. This kind of transfer may satisfy your IRA minimum distribution requirements and help reduce your taxable income.
- Bequest Intention: Maybe you would like to help Tribal Nations, but are not in a position to make a cash gift right now. You might want to consider a future gift through a bequest made in your will or trust, or naming NARF as a beneficiary in your insurance policy.
To explore the options above, please visit: https://plannedgiving.narf.org.
If you would like more information on any of these end-of-year planning strategies, please contact [email protected] to discuss ways to meet your needs and goals.
Charitable Deduction Disclosure and Disclaimer: The following is merely information, not tax or legal advice. Please consult your independent tax advisor to determine the effect of your donation on your particular situation.
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