Making a charitable donation is not only a chance to make a difference, it is also an excellent way to reduce your tax burden. Here are three tips for making your donation count:
1. Avoid capital gains tax.
Consider making a donation of appreciated assets. By donating property that you have owned for at least a year and has appreciated in value (i.e., stocks), not only can you deduct the fair market value – you also avoid paying capital gains tax altogether.
2. If you are 70 ½ years of age or older, consider donating an IRA.
You may exclude up to $100,000 per person, per year from your Individual Retirement Account (IRA) distributions which are given directly to charities.
3. Make a donation to the Center and get half back.
If you have Missouri tax liability and donate a minimum of $500 (accumulated), you can receive a 50% tax credit under the state of Missouri’s Youth Opportunity Program (YOP) or Neighborhood Assistance Program (NAP). For more information on Missouri tax credits, contact Sue Kaiser, director of development at email@example.com.
This is for information purposes only; it is not intended to substitute professional tax advice.
Consult your tax preparer or financial advisor for specific advice.