Tax Benefits of Giving

Your love and generous financial and emotional support has had a direct life-saving impact and we need your help in order to serve more children. We are already so grateful to you, but if you’d like to do a little something more because you love the kids, here are some tax-saving giving strategies that are a win-win. You help the kids at JAFCO and save on taxes at the same time. Here are 4 great ideas to discuss with your financial advisor and see which of these options are best for you:

Donate your appreciated stocks instead of cash — JAFCO accepts gifts of stock!
If you have owned a stock for more than one year and it has grown in value, you may be able to receive two tax benefits: avoid taxes on the appreciated value and qualify for an income tax charitable deduction based on today’s market value when you itemize. You receive the same tax saving as if you wrote a check, but with the added benefit of eliminating capital gains taxes.

Sell your depreciated assets and donate the cash
If you would like to support JAFCO but your stocks have decreased in value, it is best to sell them first and then donate the cash. This allows you to record the loss as a tax deduction and qualify for an income tax deduction for the gift.

Make a Qualified Charitable Distribution (QCD) of IRA assets
If you are 70½ or older you can transfer up to $105,000 per year from your IRA directly to JAFCO without having to pay income taxes on the transfer. If you need to meet a Required Minimum Distribution (RMD), you can use this transfer to satisfy all or part of your obligation, and by reducing your IRA balance, a QCD may also reduce your RMD in future years, lower your taxable estate, and limit your beneficiaries’ tax liability.

Help offset the tax liability on a retirement account withdrawal
If you are 59½ or older, you can take a distribution from your retirement plan account and then make a gift to JAFCO without an early withdrawal penalty. If you itemize your deductions, you can take a charitable deduction for the amount!