May 2021
Information on Tax and Estate Planning from the Masonic Charities of the Grand Lodge of Pennsylvania but once you do, you will never look back. I told Tom to contact our office for his FREE Qualified Charitable Distribution (QCD) Kit and then talk to his advisor about dividing up his QCD among his favorite charities, including the Masonic Charities. I reminded Tom that if he doesn’t need his Required Minimum Distribution (RMD), then turning it into a QCD is an added benefit.
The Savvy Giver I was visiting with Brother Tom, age 75, at his apartment on the Masonic Village at Sewickley campus. Tom vented his frustration with me about making gifts to his favorite charities but never being able to save any taxes for his generosity because his standard deduction each year exceeds all of his charitable gifts. He asked what he should do to maximize his giving potential. I told Tom he has to be a “Savvy Giver” when he parts with his hard-earned dollars, or his friends in Washington will thank him for sending it their way. He asked me what I meant by being a Savvy Giver. I encouraged him to follow these “Commandments of Giving” when supporting his favorite charities: 1. Thou Shall Give By Qualified Charitable Distribution if Older than 70½. - Hands down, this is the number one way to give to charity if you are over 70½ and have a traditional IRA. You avoid tax on any amount given from your IRA to charity, which is like getting a free tax deduction. Yes, it’s more complicated than writing a check,
2. Thou Shall Consider Giving Stock, ETF or Mutual Fund Gifts to Charity Instead of Cash Too many times, I see donors miss this savvy giving tip. You may have a stock, ETF or Mutual Fund you bought years ago, and you are feeling good about how much it has gone up, but you can’t sell it because of all the capital gains taxes you would pay. Well, for the Savvy Giver, there is another alternative. You can give that appreciated stock, ETF or Mutual Fund to your favorite charity, get a deduction for the current value AND avoid the capital gains taxes on what you gave away. That’s a DOUBLE WIN. Even if you can’t use the deduction, you still avoid the taxes. You can make this kind of gift at ANY age. Contact our office for further information on the Savvy Giver Stock Gift. 3. Thou Shall Always Give up to $300 in Cash to Charity, Even if You DON’T ITEMIZE! - This is another no-brainer. The new tax law permits you to deduct up to $300 in cash gifts to charity if you don’t itemize your taxes. This is like getting a “Free Spin” card on Wheel of Fortune. Whatever you do after reading this article, don’t miss out on this freebie.
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