Smart Strategies for Maximizing the Tax Benefits of Your Charitable Donations (for U.S. Taxpayers)
Many people are unaware that giving to non-profit organizations can offer substantial benefits for their US tax situation.
There are several straightforward donation strategies that may help reduce your tax liability, making this an ideal time to explore options that allow you to support the causes you care about while enjoying tax advantages.
DONATIONS FROM YOUR INDIVIDUAL RETIREMENT ACCOUNT (IRA) / REQUIRED MINIMUM DISTRIBUTIONS (RMD)
Consult your financial advisor to determine whether you are eligible to make a donation directly from your IRA to La Biblioteca and potentially reduce your tax burden.
Make a difference today and save on taxes. It is possible when you support La Biblioteca Pública through your IRA.
A Special Opportunity for Those 73 Years Old and Older
For the 2025 tax year, you can give any amount (up to a maximum of $108,000) from your IRA directly to a qualified charity such as La Biblioteca Pública without having to pay income taxes on the money.
Gifts of any value $108,000 or less are eligible for this benefit and you can feel good knowing that you are making a difference at La Biblioteca Pública.
This popular gift option is commonly called the IRA Charitable Rollover, but you may also see it referred to as a Qualified Charitable Distribution, or QCD for short. If you are married and both spouses have their own IRAs, each can make a QCD, for a potential combined total of $216,000.
Why Consider This Gift?
La Biblioteca Pública de San Miguel de Allende cannot provide individual financial or legal advice, as each person’s circumstances are unique and U.S. tax laws change frequently. Individuals interested in these types of donations should consult their accountants and attorneys.
If you have any questions, please contact:
donate@labibliotecapublica.org
GIFT OF APPRECIATED SECURITIES
Donate stocks or mutual funds that you have held for more than one year. Avoid paying capital gains taxes and receive a tax deduction while supporting our mission.
If you own appreciated stocks that have increased in value and whose sale would trigger significant capital gains taxes, consider donating the appreciated shares directly to Funds for the Biblioteca Publica Inc. This method may allow you to avoid capital gains taxes. Please consult a financial advisor or accountant beforehand.
A Tax-Savvy Way to Benefit from Growing Assets
Securities and mutual funds that have increased in value and been held for more than one year are popular assets to use when making a gift to La Biblioteca Pública. Making a gift of securities or mutual funds offers you the chance to support our work while realizing important benefits for yourself.
When you donate appreciated securities or mutual funds in support of our mission, you can reduce or even eliminate federal capital gains taxes on the transfer. You may also be entitled to a federal income tax charitable deduction based on the fair market value of the securities at the time of the transfer.
Securities are most often used to support our work in the form of:
La Biblioteca Pública de San Miguel de Allende cannot provide individual financial or legal advice, as each person’s circumstances are unique and U.S. tax laws change frequently. Individuals interested in these types of donations should consult their accountants and attorneys.
If you have any questions, please contact: donate@labibliotecapublica.org
DONOR ADVISED FUNDS (DAF)
Experiencing a sizable investment gain this year? This could increase your tax burden. Establishing a DAF allows you to receive an immediate tax deduction and then make grants to qualified organizations from your DAF over time.
This method is a flexible and popular option for tax-efficient giving. Please consult your financial advisor or accountant.
Tax-Advantaged Donations Through a Donor-Advised Fund (DAF)
To establish a DAF, first choose a sponsoring organization, such as a local community foundation or a national sponsor like Fidelity Charitable, Vanguard Charitable, or the National Philanthropic Trust (NPT).
Then open your account and begin making contributions. Finally, select your investments and make grants to registered 501(c)(3) organizations, such as La Biblioteca Pública.
Most brokerage firms can help you set up these funds, so we recommend consulting your financial advisor.
Key Benefits:
La Biblioteca Pública de San Miguel de Allende cannot provide individual financial or legal advice, as each person’s circumstances are unique and U.S. tax laws change frequently. Individuals interested in these types of donations should consult their accountants and attorneys.
If you have any questions, please contact: donate@labibliotecapublica.org
Legal name in the U.S:
Funds for the Biblioteca Publica Inc, aka Biblioteca Pública de San Miguel de Allende A.C.
Federal tax ID (EIN):
68-039932
La Biblioteca Pública de San Miguel de Allende cannot provide individual financial or legal advice, as each person’s circumstances are unique and U.S. tax laws change frequently. Individuals interested in these types of donations should consult their accountants and attorneys.
If you have any questions, please contact: donate@labibliotecapublica.org