Donating Appreciated Assets

Donating Appreciated Assets

Donating assets from your retirement and investment accounts is TAX-WISE philanthropy.
You avoid capital gains or other taxes and receive a tax deduction for the gift’s current
fair market value. And because nonprofit organizations do not pay income taxes,
all of your gifts will be used to support the mission of Laguna Beach Seniors.

Making a Qualified Charitable Distribution (QCD)

The IRS generally requires us to start withdrawing a Required Minimum Distribution (RMD) from our IRA, SIMPLE IRA, SEP IRA, or retirement plan when we turn 72. If you do not need this income, here’s how to help Laguna Beach Seniors and avoid any income tax on your RMD: make this withdrawal an IRS-approved Qualified Charitable Distribution (QCD).

It is pretty simple: You direct your IRA custodian (Schwab, Morgan Stanley, etc.) to make a QCD to Laguna Beach Seniors. Your custodian will make sure that our nonprofit is qualified under IRS rules and then will mail us or you a check from your account payable to “Laguna Beach Seniors, Inc.”

Here are the TAX-WISE benefits of making an IRA charitable distribution gift:

  • You’ll avoid taxes on transfers of up to $100,000 from your IRA to Laguna Beach Seniors.
  • Your gift may satisfy part or all of your required minimum distribution (RMD) for the year.
  • Your QCD gift is not subject to the deduction limits that may apply to other charitable gifts.
  • You further the work and mission of Laguna Beach Seniors.

Donating Stocks, Bonds, Mutual Fund Shares, Annuities, Real Estate

Appreciating assets are generally subject to capital gains taxes when they are sold. By donating these assets to Laguna Beach Seniors, you avoid capital gains taxes and receive a tax deduction for the fair market value of your gift on the date it is received. That’s TAX-WISE philanthropy!

Donating stock or securities can be made in two easy steps:

  • Provide the authorization needed by your brokerage or agent, along with our electronic transfer information. (Available from Finance Manager Judy Baker at (949) 715-8105.)
  • Provide us with the following information: name of the security, number of shares, and Brokerage name

We always recommend that donors work with their estate planning advisors when considering a major charitable gift. If you want to explore the benefits of a specific gift, we are happy to connect you with one of our trusted financial planning professionals who have volunteered to provide donors with a free — and obligation-free — consultation. Please contact Executive Director Nadia Babayi at (949) 715-8102 or for more information.

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