Tax Benefits of Giving
Your love and generous support has truly been life-saving — thank you!
If you’d like to do a little more to help the kids at FamilyMatters, A JAFCO Support Network, here are four smart, tax-saving giving strategies to consider with your financial advisor. You’ll help even more children and save on taxes — a win-win!
Donate Appreciated Stocks
If you’ve owned stock for over a year and it’s increased in value, you can:
- Avoid capital gains taxes
- Take a charitable deduction for the full market value
Same tax savings as a cash gift — plus more benefits!
Sell Depreciated Assets & Donate the Cash
If your stocks have lost value, sell them first, then donate the cash. You may:
- Claim a capital loss
- Deduct the donation from your taxable income
Make a Qualified Charitable Distribution (QCD) from Your IRA
If you’re 70½ or older, you can donate up to $105,000/year directly from your IRA:
- No income taxes on the transfer
- Counts toward your Required Minimum Distribution (RMD)
- May reduce your taxable estate
Offset Taxes on Retirement Withdrawals
If you’re 59½ or older, you can withdraw from a retirement account and donate the funds:
- No early withdrawal penalty
- Eligible for a charitable deduction if you itemize
Talk to your financial advisor to see what works best for you — and thank you for helping us make a difference!