Gifts of Appreciated Securities:
Did you know that you can contribute appreciated securities tax-free to Bethlehem? Securities that have appreciated in value may be donated, and you pay no capital gains tax on them. Bethlehem sells your securities and uses the proceeds for its mission and ministry. Because Bethlehem has its own brokerage account, we can provide a seamless process to accept in-kind transfers of securities such as common stock, mutual funds, and Exchange Traded Funds (ETF’s). The securities are not sold until they reach Bethlehem’s brokerage account. The full amount is then tax free and allows you to potentially use the full amount as a charitable donation/deduction on your tax return making this a win/win situation. Please consider this as part of your year-end tax planning and for future years as well.
Required Minimum IRA Distributions (RMD’s):
Why not save yourself the tax? Many individuals are required to withdraw funds from their retirement accounts as a required minimum distribution (RMD) in the year their age reaches 70 ½. As part of a simple tax planning tool, you can use part of your RMD to fulfill your offerings to Bethlehem, whether as part of your annual giving strategy or as a one-time contribution. IRS rules allow for what is known as a “qualified charitable distribution.” The impact of these distributions is tax free and, at the same time, could generate additional benefits on your tax return. This is especially true for those who cannot deduct their annual giving as a charitable contribution.
Please remember that tax laws are subject to change, so you should verify the programs are still in place when making your plans. If you have any questions, or have an interest in pursuing either of these topics, please contact Heather Feltman at (630) 584-2199, or at email@example.com.