Thanks to a group of generous donors, every dollar donated to NSRWA by December 31 will be matched up to $50,000!
Can it get any better? Yes it can! By using tax-wise strategies with your year-end gift, you can enjoy sizable tax benefits. Consider the popular giving options below.
Use Your Required Minimum Distribution (RMD) to make a Tax-Free Gift
RMDs from your retirement account offer a special opportunity to support NSRWA without paying taxes on the distribution. How is that possible? A Qualified Charitable Distribution (QCD) allows the gift to be sent directly from your retirement account to NSRWA, and the gift amount does not count as income to you.
By donating all or part of your RMD directly to NSRWA:
- You Satisfy Your RMD Obligation
- You Avoid Income Taxes on the gifted amount.
- You Deliver the full value of your distribution to NSRWA.
Most retirement custodians require that distribution instructions come directly from you, and they commonly require their own forms. Contact your retirement plan custodian for details on making a QCD to take advantage of tax savings before the end of the year.
Gifts of Appreciated Stock
As a donor, you can increase the impact of your giving by donating appreciated stock instead of selling the stock and giving cash. Here’s how:
- You Avoid Capital Gains Tax: By transferring the stock instead of selling it, you can eliminate the capital gains tax you would normally pay on the growth in the stock’s value. This savings alone may allow you to maximize your charitable giving.
- You Receive a Full Deduction: You can deduct 100% of the stock’s value at the time of the transfer.
You get the tax benefit, and NSRWA can receive a larger investment in its future! To take advantage of this opportunity, you can initiate a transfer using this form.
Gifts through Donor-Advised Fund (DAF)
A Donor-Advised Fund is an exceptional tool that gives you the flexibility to distribute charitable gifts over time, while offering immediate tax benefits in the year you fund your DAF.
- You Benefit from Streamlined Giving: DAFs simplify the process of making grants over time.
- You Enjoy the Immediate Tax Benefits: You can deduct the funding of the DAF in the year you contribute cash or stock. The assets grow tax-free while you plan your charitable distributions.
Donor-Advised Funds are offered through sponsor organizations like Fidelity Charitable, Schwab Charitable, Vanguard Charitable and others. Contact a DAF sponsor organization to establish a DAF and to begin funding this effective tax-wise giving vehicle. If you have an established DAF, please consider initiating a grant to NSRWA before December 31 to support our Matching Gift Challenge.
Always consult a professional financial advisor to review your overall financial situation before making decisions related to charitable gifts.