Preparing Boys for Life.

Maximizing Year-End Benefits of Charitable Planning

As the year comes to an end and the holiday season approaches, consider gifts to your charitable organizations that maximize the benefits to both you and the charity. The Haverford School is able to help you facilitate these types of gifts if you’re interested! Click below if:

Contact Director of Planned Giving Mary-Helen McCulloch, Esq. at mmcculloch@haverford.org or 484-417-2774 for questions or ideas on how to maximize your year-end planning!

 

If You Have Appreciated Stock or Property:

Even with recent market fluctuations, you likely have experienced gains in the stock market over the last few years. Appreciated assets can be given to Haverford through a variety of vehicles including outright gifts, charitable gift annuities, and charitable remainder trusts. The benefits are outstanding! Generally, you can deduct the full fair-market value if you have held the appreciated assets for more than one year and you pay no capital gains tax. Donating these types of investments, especially highly appreciated securities, can be very tax-effective particularly, if you contribute the securities directly to Haverford as opposed to selling them first.

Illustration:

Numbers used are for illustration only. All individuals’ circumstances are unique and we recommend you contact your tax or financial advisor for any questions.

Click here for instructions on how to give gifts of securities to Haverford. 

 

If You and or a Family Member is 70 ½ or Older:

Use the IRA Charitable Rollover provision to save and give! Utilizing the Required Minimum Distribution (RMD) from your IRA you can give to Haverford and remove the contribution amount from your taxable income. When paid directly from the IRA provider to Haverford, you can transfer up to $100,000 annually from each of your qualified retirement plans. These charitable distributions are not subject to a percentage of adjusted gross income limitations for charitable contributions and are not reportable as income for Social Security purposes either and amounts withdrawn from an IRA account are removed from your taxable estate. Contact your IRA plan administrator directly and let them know of your interest in making a qualified charitable distribution to Haverford.

Illustration:

Numbers used are for illustration only. All individuals' circumstances are unique and we recommend you contact your tax or financial advisor for any questions.

 

If You Are Concerned About Taking the Standard- or Itemizing your Deductions:

Create a Donor-Advised Fund (DAF). If you would like to continue supporting Haverford on an annual basis but are concerned about the standard deduction being doubled with the Tax Cuts and Jobs Act, creating a DAF allows you to “bunch” your giving. That is because gifts to DAFs are tax-deductible. In other words, you can combine two or three years’ worth of charitable donations to Haverford in one calendar year in order to exceed the standard deduction in that year. You can then use the assets in the donor-advised fund to consistently support Haverford.

Illustration:

Numbers used are for illustration only. All individuals' circumstances are unique and we recommend you contact your tax or financial advisor for any questions.


Graphics credits: Appreciated Stock vs. Cash from "The 3 Secrets of Tax-Free Giving" from The Tony Robbins Tax Guide; IRA Charitable Rollover from the University of South Dakota Foundation website; Donor Advised Funds from Tax Changes & Charitable Giving: Have Your Cake and Eat It Too by Rob Greenman. 

Contact Director of Planned Giving Mary-Helen McCulloch, Esq. at mmcculloch@haverford.org or 484-417-2774 for questions or ideas on how to maximize your year-end planning!