A Time of Giving
As the year-end approaches, many people think of making tax-deductible contributions to their favorite non-profit organizations. We hope you will include the Heritage Center in your giving for 2022. Beyond simply sending money, here is a great way to expand your gift!
Increase the tax benefits of your contribution by donating appreciated securities directly to charity or by sending your Required Minimum Distributions from IRA accounts directly to charity.
When appreciated stocks or mutual funds held for more than a year are donated to the Heritage Center or another public charity, the donor enjoys an income tax charitable deduction for the asset's full fair market value and avoids tax on the capital gain.
Consider this example:
Original cost of your investment is $5,000 and today is worth $10,000.
If you donate the investment directly to a public charity you receive a tax deduction for $10,000 and report no capital gains on your tax return.
If you donate cash to a public charity and personally sell the investment for cash needs you still get the $10,000 deduction but must pay tax on the capital gain of $5,000 which would be around $1,000, dependent on your tax bracket.
If you are 70 ½ or older, you also could make a Qualified Charitable Contributions (QCD) from your IRA account.
A QCD permits a direct transfer to a qualified charity of tax deferred IRA savings. QCDs offer advantages over taking a taxable distribution and then contributing the proceeds because the IRA distribution does not get included in one's adjusted gross income. Taxability of Social Security benefits, as an example, are based on your adjusted gross income as well as medical expense deductions and Medicare insurance premium amounts. With a lower adjusted gross income you have an advantage in reducing income taxes with QCDs.
As well with the current high standard deduction one may not even be getting the benefit of the tax deduction for their charitable contributions and this strategy guarantees tax savings for the amount of the contribution.
And maybe most importantly, QCDs qualify as satisfying Required Minimum Distribution (RMD) obligations. For an IRA owner that doesn't need their RMD to live on for cash flow, they can be sent directly to a public charity and avoid being included in adjusted gross income.
To be eligible your IRA administrator must make the distribution payable directly to the Central Rappahannock Heritage Center or other public charity of your choice.
If you wish to utilize either of these tax advantaged gifting strategies please contact our Treasurer, Daniel J. Bender at dbender@pbmares.com , (540) 371-3566.
MANY THANKS TO OUR GENEROUS
2022 HERITAGE CENTER SPONSORS & CORPORATE MEMBERS
Deborah Baker
Barbara Barrett
Linda M. Billard
Jeanette and Nick Cadwallender
Barbara Hicks Cecil
Cooper Financial Group
Dovetail Cultural Resources Group
Jim and Betsy Greene
Lucy and Wayne Harman
Mary Jane O’Neill
Donations for Center Operations
Donald H. and Beverly Newlin
The Josiah P. Rowe III Family Legacy Fund
The Forbush Family Trust
The Hon. J. M. H.Willis
It's that time! Please become a 2023 sponsor! Corporate and private contributions are welcomed! Help us continue to save our history!
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