Tax Smart Ways to Give

Appreciated Stock Donation

Appreciated stock gifts are a powerful tool for charitable giving that is often overlooked. A gift of stock directly to the Craft Center that has appreciated for more than a year provides significant benefits, including an immediate charitable deduction for the full market value of the stock and avoidance of capital gains taxes that would normally be due upon sale.

Donor Advised Fund (DAFs)

Door Advised Funds are investment accounts for the sole purpose of supporting charitable organizations you care about. Once you identify a managing organization to work with, they will help you invest the funds in the account for tax-free growth. You receive the tax-benefits in the year that you contribute to your fund, and then you decide when and how much you want to grant to your favorite charity, like us! And there are no annual payout requirements like with private foundations.

DAFs can be particularly beneficial in reducing tax burdens after a windfall situation such as receiving an inheritance, selling a business, or experiencing strong market returns.

IRA Gift – Qualified Charitable Distribution (QCD)

If you are 70 ½ or over, you can make a Qualified Charitable Distribution directly from your IRA to BCC. A Qualified Charitable Distribution (QCD) gift goes directly to charity, you don’t report QCDs as taxable income and don’t owe any taxes on the QCD. A QCD can also help to fulfill the Required Minimum Distribution (RMD) when applicable.

Legacy Giving

Legacy giving, also known as planned giving, is a donation made by an individual through a will or other formal designation. In most cases, a legacy gift is made upon someone’s death, but not always. Legacy giving can include recurring donations that begin while the donor is alive and continue after they’re deceased. 

Bequests are the most popular and simplest type of legacy giving. In your will, you can specify what you wish to donate to BCC, whether it’s a specific amount of funds, stocks, a piece of art, or even a percentage of the value of their estate. This method allows you to make a lasting impact well into the future without affecting their income today.

Be sure to share your gift plans with your financial advisor. If these options are of interest to you or if you have any questions, please don’t hesitate to reach out to continued support is incredibly appreciated and we look forward to the positive impact we can make together.