More Ways to Donate
Donate Appreciated or Depreciated Property
If you give securities—such as stocks, bonds, and mutual funds that have increased in value—you can receive multiple tax benefits. Donating securities allows you to bypass capital gains taxes, and such gifts are also generally deductible from your income taxes at full fair market value if you’ve owned them for more than a year. Gifts like these are deductible in amounts up to 30% of Adjusted Gross Income.
If you own an investment that’s decreased in value since you bought it, consider selling it and donating part or all of the cash proceeds. You can deduct the cash donation from your income taxes, and selling creates a loss you may be able to deduct from other taxable income. The combined amount of the deductible loss and the charitable deduction could add up to more than the current value of your investment.
A Gift through Your Will or Living Trust
After providing for loved ones, you can designate a specific amount of money, a certain property, or all or a percentage of what remains to charitable purposes you choose. There’s no limit to the amount of charitable gifts you can deduct for gift and estate tax purposes
Gifts of Retirement Plan Assets
Gifts of cash, check, or credit card are the most popular method of memorial giving. If you itemize your tax deductions, gifts of cash can serve to eliminate tax on up to 50% of you adjusted gross income (AGI).
Gifts of Life Insurance
If you own life insurance policies that have built up cash value but are no longer needed to provide for dependents, consider donating all or part of the value of the policy. You’ll save on your current income taxes, and this can also lead to significant estate tax savings.