OTHER WAYS TO GIVE
Gifts of stocks and mutual funds can be a tax-efficient gifting option. A gift of highly-appreciated securities can offer donors two-fold tax savings through the charitable income tax deduction for the value of the shares and the avoidance of capital gains tax that would be owed if the shares were sold.
RETIREMENT PLANS AND IRAs:
IRAs, 401(K), 403(B) and other retirement accounts grow tax-deferred, often becoming quite large over the years. Unlike many other types of investments, funds withdrawn from retirement accounts can be taxable to you and, eventually, to your heirs.
Designating BEYOND as the beneficiary of your retirement account can be a tax-savvy way to carry out your charitable estate planning goals. While individual beneficiaries would be subject to tax on funds withdrawn from an inherited retirement account, BEYOND will pay no income tax on these funds. Using retirement accounts for charitable giving leaves other assets in your estate that can pass to individual beneficiaries without being subject to income tax.
QUALIFIED CHARITABLE DISTRIBUTIONS:
Individuals who are age 70 ½ or older are permitted to make a tax-advantaged distribution to charity from an IRA. Distributions from an IRA paid directly to BEYOND can be excluded from the giver’s gross income. If you are over 72 years of age, distributions to charity can count toward your required minimum distribution (RMD) amount. Distributions of up to $100,000 per year from an IRA can qualify for this treatment.
If you have a life insurance policy that you no longer need, donating it to BEYOND may allow you to take advantage of a charitable tax deduction. For a paid-up policy, you’ll benefit from an income tax deduction equal to the replacement value of the policy or the tax basis (premiums paid on the policy up until the date of the gift), whichever is less. If premiums remain to be paid, future annual premiums (paid to BEYOND) may qualify as tax-deductible charitable gifts.
CHARITABLE GIFT ANNUITIES:
A charitable gift annuity (CGA) allows you to make a gift to BEYOND and retain an income stream for yourself and/or another beneficiary for your lifetime(s). BEYOND will receive the remainder of the gift upon your death(s).
The pay-out rate for your income payments is based upon the age of the individual annuitants at the time the payments begin, and you would be entitled to take a charitable income tax deduction equal to the funding amount, minus the value of the retained income stream.
A charitable bequest to BEYOND, whether a specific amount, a percentage of your estate or the remainder after you have provided for your loved ones, will also allow you to create a philanthropic legacy while potentially providing estate tax relief.
A gift of cryptocurrency can offer benefits similar to a gift of securities. Donors have the opportunity to claim an income tax deduction for the value of the donated assets and avoid the capital gains tax that would be owed if the cryptocurrency were sold.
The IRS has chosen to treat cryptocurrency owned by traders as property other than cash or publicly traded securities. As such, donors will need to get a qualified appraisal in order to claim a charitable deduction on their income tax return. The qualified appraisal must comply with the IRS rules and the donor must obtain it prior to filing their taxes for the year the gift is made.