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INVESTMENT GIFTS
Tax-Savvy Strategies for Charitable Giving by US tax payers
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.
The Biblioteca Publica de San Miguel de Allende cannot provide individual financial or legal advice as each individual person’s situation may vary. Individuals should check with their accountants and lawyers before using sample documents we provide.
Please contact us to discuss questions or the specifics of your designation at donate@labibliotecapublica.org
GIVE FROM YOUR IRA / REQUIRED MINIMUM DISTRIBUTIONS (RMD)
Consult with your financial adviser to determine if you are elegible to make a gift directly from your IRA to La Biblioteca and potentially reduce your tax bill.
Make a difference today and save on taxes. It is possible when you support the Biblioteca Publica through your IRA.
A Special Opportunity for Those 73 Years Old and Older
You can give any amount (up to a maximum of $108,000) this year from your IRA directly to a qualified charity such as the Biblioteca Publica 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 the Biblioteca Publica. 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? Your gift will be put to use today, allowing you to see the difference your donation is making.
- If you are required to take minimum distributions from your IRA, you can use your gift to satisfy all or part of your obligation.
- You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
- Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.
The Biblioteca Publica de San Miguel de Allende cannot provide individual financial or legal advice as each individual person’s situation may vary. Individuals should check with their accountants and lawyers before using sample documents we provide.
Please contact us to discuss questions or the specifics of your designation at donate@labibliotecapublica.org
Click here to find a sample letter you can send to your financial advisor
NOTE: This one-page letter is pre-filled with the information you need to make a distribution to the Biblioteca Publica. Please discuss with your financial advisor. Simply add your information, print the letter, and mail to your retirement account provider. Please delete these instructions before printing the letter.
GIFTS OF STOCK
Donate stocks or mutual funds held more than one year. Avoid capital gains tax and receive a charitable deduction while supporting our mission.
If you own stock that has increased in value and would incur significant capital gains tax upon sale, consider donating the appreciated shares directly to Funds for the Biblioteca Publica Inc. This approach may allow you to avoid capital gains taxes. Please consult your financial advisor or accountant.
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 the Biblioteca Publica. 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:
- An outright gift. When you donate securities to the Biblioteca Publica, you receive the same income tax savings that you would if you wrote a check, but with the added benefit of eliminating capital gains taxes on the transfer.
- A transfer on death (TOD) account*. By placing a TOD designation on your brokerage or investment account, that account will be paid to one or more persons or charities after your lifetime.
*State laws govern transfer on death accounts. Please consult with your bank representative or investment advisor if you are considering this gift.
The Biblioteca Publica de San Miguel de Allende cannot provide individual financial or legal advice as each individual person’s situation may vary. Individuals should check with their accountants and lawyers before using sample documents we provide.
Please contact us to discuss questions or the specifics of your designation at donate@labibliotecapublica.org
DONOR-ADVISED FUNDS
Experiencing a sizable investment gain this year? Establishing a DAF enables you to make an immediate, tax-deductible gift to a sponsoring charity and then make grants to qualified organizations over time. This method is a flexible and popular choice for tax-smart giving. Please consult your financial advisor or accountant.
Tax-smart Giving
Experiencing a sizable investment gain this year? Establishing a donor-advised fund (DAF) enables you to make an immediate tax deduction, and then make future gifts to qualified organizations over time. This method is a flexible and popular choice for tax-smart giving.
A DAF, which is like a charitable savings account, gives you the flexibility to recommend how much and how often money is granted to the Biblioteca Publica and other qualified charities.
The Biblioteca Publica de San Miguel de Allende cannot provide individual financial or legal advice as each individual person’s situation may vary. Individuals should check with their accountants and lawyers before using sample documents we provide.
Please contact us to discuss questions or the specifics of your designation at donate@labibliotecapublica.org
