You’ve worked hard, saved a lot, and invested it well. You have retirement accounts, IRAs and other investments. Allow those assets to benefit you and your family, reduce your taxes, and also support the Idlewild Foundation, Idlewild Baptist Church and the Gospel!
If you are not sure how this can work for you, read on. If you have further questions, give us a call.
How It Works for You:
• Name The Idlewild Foundation as a beneficiary of your IRA, SEO IRA, 401(k), or other qualified retirement plan.
• The balance of your retirement assets will go to The Idlewild Foundation. Make certain that you contact your plan administrator.
• Tell us. Your plan administrator is not obligated to notify beneficiaries.
Benefits to You Include:
• You can continue to receive withdrawals.
• You still have the flexibility to change beneficiaries if your wishes change during your lifetime.
• Your heirs avoid potential double taxation on assets left in your retirement account.
Examples and Opportunities:
• An Idlewild member heard about tax-wise giving in a class taught by The Idlewild Foundation. He learned to make a donation to the Foundation of highly appreciated stock to boost his charitable donation deduction to offset income. He received a deduction for the full value of the stock and did not have to pay capital gains due to the donation. The Idlewild Foundation owed no taxes on the appreciated stock received.
• Others have designated The Idlewild Foundation and The Idlewild Foundation Scholarship Fund in their wills, trusts or beneficiary designations for donations.
The Benefits of Gifts of Property:
Instead of giving cash out of your discretionary income, consider these options which allow you to support the Gospel and receive tax benefits:
• Give Appreciated Real Estate
If you own real estate that has appreciated in value since the date of purchase, not only can you deduct the fair market value of the property (if you have owned it for at least one year), but you can also avoid paying capital gains tax on the amount of the appreciation. Normally, appreciated property is subject to capital gains tax upon sale. But for donations to charities, there is an exception. You get the benefit of the appreciation in your deduction and pay no capital gains taxes!
• Give Appreciated Stocks
If you own stock that has appreciated in value since the date of purchase, you deduct the current market value of the stocks (if you have owned it for at least one year), and also avoid paying capital gains tax on the amount of the appreciation. As with real estate, you get the benefit of the appreciation in your deduction and pay no capital gains taxes!
• Give Life Insurance or a Retirement Plan
A beneficiary designation gift is an easy and affordable way to make a gift to support the mission of The Idlewild Foundation and the Gospel. You can designate TIF as a beneficiary of a retirement, investment or bank account or your life insurance policy.
• Give Required Minimum Distributions
Required Minimum Distributions (RMDs) from IRA’s begin when you reach age 70 ½. There are times when that income from an IRA may put you into a higher bracket. While you cannot donate the entire IRA to a charity under current law, you can donate the some or all of the RMD payment and receive a deduction that will keep you in the same tax bracket.
• Give Personal Items
Personal property rarely appreciates in value (with collectables making up the vast majority of the exceptions here). But personal items you are not using and that is merely taking up space may have a fair market value you can deduct. Those tools you no longer use, that suit that no longer fits, that couch that doesn’t really fit with the new colors you painted the room; they all have a fair market value that you may be able to deduct after you donate them to a qualified charity.
Important Related Topics:
See Planned Giving – A Blessing for All, Tax-Wise Charitable Giving, Giving Before the Sale of a Non-Cash Gift, Give First, or Sell First, then Give, Giving Business Interests, IRA Charitable Rollovers, and Innovative Non-Cash Gifts.