In life, we plan many things. We set goals. We make resolutions. We start fresh. We look at last year and think of ways to improve our physical, emotional, and spiritual lives. Shouldn’t we also do that regarding our charitable giving?
There are so many ways and reasons to give to Life Choices. Our goal is to help you leave a legacy that benefits you, your family, and young people in our community now and for years to come. Your planned gift will ensure that future generations facing the difficult decision of an unexpected pregnancy will have opportunities to be guided, to be empowered, and to take control of their future with a life-affirming plan.
If you have a desire to take a closer look at ways to be more strategic about where and how you give, we would like to offer some planning ideas. These ideas may help you stretch your giving dollars to make more money available to your favorite charities without increasing your charitable giving budget. Please always consult with your tax professional or financial planner in any of these matters.
• Qualified Charitable Distributions (QCDs) If you are over 70 ½, you can make a qualified charitable distribution directly from your IRA custodian to a qualified charity, which is excluded from taxable income (and lessens the potential tax impact on Social Security, the cost of Medicare premiums, and other tax deductions/ credits). QCDs are also included when satisfying your required minimum distributions (RMDs) for the year if certain rules are met.
• Gift of Appreciated Assets Make a donation of assets that have appreciated in value to avoid capital gains tax on the gain. These include marketable securities such as stocks, bonds, mutual funds, ETF as well as real estate.
• Using a Donor Advised Fund (DAF) There are potential tax advantages to making charitable donations using a Donor Advised Fund. Basically, the charitable donation is deducted the year that you make the donation to the DAF, however, the actual donation may be scheduled to be paid to the charity later. Talk to your financial advisor to determine if a DAF is right for you.
• Retirement Accounts You can significantly lower your estate taxation AND income taxation by listing Life Choices of Memphis as a beneficiary on your retirement account. Retirement accounts are subject to both the estate and income taxation.
• Charitable Bequest Designate Life Choices of Memphis as a beneficiary in your will, trust, or other instrument for a portion of the assets, which provides a deduction for estate tax purposes.
• Life Insurance Gift One way to really leverage your charitable giving is to transfer any life insurance policy you no longer need to Life Choices of Memphis and pay the future premiums with income tax deductible contributions.
Contact Cathy Schroeder at email@example.com with questions on how you can leave a legacy!
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