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Tax-Wise Giving

Giving Smarter: Tax-Wise Giving Strategies

By Rob Kinsey, Development Specialist

What do helping children around the world and taxes have in common? While you may be waiting for the punch line for a “dad joke,” they are more connected than you think.

We are grateful for those of you who support our mission and want to give you a few ways that you may consider to potentially lower your tax bill and free up more funds to help us or yourself.

Here are three tips for tax-wise giving:

1. Consider giving appreciated assets.

Appreciated assets can include stock, mutual funds, or even real estate. They should be held for more than one year for the full benefit. You would be eligible to receive a deduction based on the asset’s current value, not what you paid for it, and you would not owe the tax you would if you sold the asset. As a qualified charity, we can sell the asset without tax consequences.

3. Proper estate planning and including charity may also increase what is available for your heirs.

This is especially true if your estate includes qualified retirement plans such as Traditional IRAs, 401Ks, 403Bs, or SEPs, as these types of accounts will be taxed when passed to heirs but not when gifted to qualified charities. Other assets can pass tax-free to your heirs. Additionally, charitable remainder trusts or gift annuities can provide a long income stream to your heirs and make a gift to charity later.


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