Tax-Savvy Giving
As the end of the year approaches, you may be looking for tax strategies that benefit you. The good news: there are many ways to make a tax-savvy gift that not only creates tax advantages for you, but also supports the Channel Islands Chamber Orchestra! While current cash gifts are always welcome, you may wish to consider the tax advantages of the following types of gifts before year-end:
IRA Rollover Gifts
If you are 70 ½ years of age or older, you can donate from your Roth or traditional IRA directly to a qualified charity such as CHICO, up to $100,000 annually, per individual. This counts towards satisfying your Required Minimum Distribution (RMD), but will not have to be included in your taxable income for the year, thus saving on income taxes. And it is very simple to do! Just as you would initiate an RMD, write or call your IRA custodian to request a transfer to the Channel Islands Chamber Orchestra in time for the gift to be completed before December 31st. The donor is responsible for consulting with their tax advisor to ensure that all gifts are reported to the IRS accurately.
Stock Transfer Gifts
If you sell highly appreciated assets that you own and then make a cash gift to CHICO, you will be subject to capital gains tax on the sale which will reduce the value of your potential gift. However, if you transfer your securities directly to CHICO, a tax-exempt charity, CHICO will pay no taxes and will derive 100 percent benefit from the value of your stock on the date it is transferred.
Donor Advised Fund Gifts
If you have already made a transfer to a donor-advised fund this year or in a prior year, you may have undirected funds waiting for you to direct to CHICO as your chosen charity. A generous gift can be completed with no new money out of your pocket. Your charitable tax deduction is already confirmed at the time you transfer your funds to the Donor Advised Fund.
Tax-Savvy Legacy Gifts
If you are thinking of making a legacy gift to CHICO for the future, please visit our legacy giving page or contact us at info@cichamberorchestra.org to learn more about tax-wise ways to leave a gift in your estate plans. There are many appealing options, including making a charitable beneficiary designation from your IRA that will not be subject to income tax, as it will be if left to your heirs. Also, creating a Charitable Remainder Trust with highly appreciated property can enable CHICO to put the full value of your asset to work providing you and your spouse a lifetime income, without having to pay capital gains tax on the appreciation of your asset, whether it be real property or securities. Whatever the form or amount of your deferred gift commitment to CHICO, you will be recognized as a valued member of our esteemed Legacy Society.
Please email info@cichamberorchestra.org if you would like more information or to schedule a complimentary and confidential consultation. This is an exciting time for CHICO, and gifts now and in the future create a sustainable organization for future generations to enjoy.