Take advantage of inflation
As we experience rising costs, your own assets may have gone up in value too. It may be time to consider donating those appreciated assets instead of cash. Donating appreciated assets like stocks create two tax benefits – you’ll off-set capital gains and receive a charitable tax deduction on your tax return.
Take advantage of higher interest rates
Interest rates have gone up, but so have Charitable Gift Annuity (CGA) annual income rates. You can lock in these higher rates for life when you set up a CGA. This type of gift pays you income for life and the higher interest rates make a charitable deduction even larger. For an extra tax benefit, you can establish a CGA by giving appreciated assets instead of cash.
Take advantage of tax savings by making a gift through your IRA starting at age 70½
Even though you are not required to take a mandatory distribution from your IRA until 72, direct donations from your IRA are allowed starting at 70 ½. These direct donations are called Qualified Charitable Contributions, and you and your spouse can each give up to $100,000 per year. It’s a smart way to give because the earned income is never taxed once its gifted directly to Pacific.
Take advantage of tax savings for your heirs through IRA beneficiary designations
Many Tiger supporters like to include charitable gifts in their estate plans. One tax smart strategy is to designate Pacific as a beneficiary of an IRA, 401(k), or 403(b) account, or to designate a charitable gift to Pacific from your retirement account as part of your will or trust. By giving from your retirement account instead of other assets, like cash, your heirs can save on income taxes. Talk with your financial and tax advisors on how to leverage this type of legacy gift.