Smart yearend giving: Stock or IRA Funds
With a new year fast approaching, time is running out to take advantage of two smart giving options: donating stock or IRA funds.
Both of these options feature excellent tax benefits, and both are easy to execute. Most importantly, donating your stock or IRA funds fuels The Salvation Army’s mission to serve hurting people and families in the name of Jesus Christ.
Here’s a closer look:
Donating stock
Gifting stock is as simple as making one phone call to The Salvation Army at 651-746-3504 or 800-456-4483.
Arrangements will be made to transfer your stock to a Salvation Army account. The Salvation Army will then sell your stock and put the proceeds to work.
Stock donors can enjoy remarkable tax benefits. Last week, for example, a woman called us to donate $600 worth of stock. She originally purchased the shares for $100.
“She will get to make a $600 charitable deduction on her taxes for a gift that ultimately cost her $100,” said David Overstake, Planned Giving director. “That is smart giving.”
You can even designate how The Salvation Army should use your stock donation. Earlier this year, for example, a Twin Cities couple donated stock toward the purchase of new tables and chairs for the Minneapolis E. Lake St. Salvation Army.
Donating from your IRA
If you are at least 70½ years old, you can donate tax-free from your traditional or Roth IRA.
Donations from your IRA can be made in any amount, from $100 on up to $100,000. These gifts can count toward your IRA minimum withdrawal amount for the year, yet they do not count as taxable income.
“This type of gift has great upside,” Overstake said. “The tax savings allow donors to stretch their dollars further. In turn, The Salvation Army is able to serve more people.”
The most important stipulation of donating from your IRA is that you must not withdraw your gift into another one of your personal accounts. Your gift must be transferred directly from your IRA to The Salvation Army.
To learn more about changing lives by donating stock or IRA funds, please call 651-746-3504 in the Twin Cities or toll free at 800-456-4483 in North Dakota or Greater Minnesota. Additional information can be found on our Planned Giving webpage.
Of course, if you don’t have stock or IRA funds to give but you still want to donate before 2016, you can always donate online.