That Benefits You, the Sisters, and Their Ministries
The end of the year is a time of reflection and anticipation for the new year ahead, and 2024 is no exception. It’s also a time of deadlines. Here are some essential charitable considerations ahead of the last day of December. Thank you for considering the Sisters and our ministries during this holiday season.
Gifts of Cash or Other Appreciated Assets
• “Appreciated Assets” that have increased in value offer significant tax advantages. These include long-term appreciated securities, such as stocks, mutual funds, bonds, real estate, or private company stock. This method can be more tax-efficient than cash donations, allowing you to give more effectively.
• Qualified Charitable Distribution: A year-end distribution from your IRA can be advantageous. If you are 70 ½ or older, the IRS requires “Required Minimum Distributions” (RMDs) from tax-deferred retirement accounts. A qualified charitable distribution (QCD) can satisfy your RMD for the year, up to $105,000, excluded from your taxable income.
• If you itemize tax deductions, you may receive an income tax deduction up to the full market value and avoid capital gains tax on the appreciation.
To Do:
• Checks must be dated December 31 (or before) and should be postmarked by December 31 to be eligible for a 2024 tax deduction. Credit card donations, stock transfers, and gifts of securities must be received by 11:59 p.m. PST on December 31.
Appreciated Stock
You may enjoy 2 tax benefits with a gift of appreciated stock: 1) Avoid paying taxes on the appreciated value, and 2) Qualify for an income tax charitable deduction based on today’s market value when you itemize.
To Do:
• Complete all transfers by Dec. 31, including electronic transfers, hand delivery of the securities, or mailed stock and stock power (mailed separately for protection).
Donor Advised Funds
Donor Advised Funds are on the rise! A Donor Advised Fund (DAF) is a dedicated charitable investment account, set up by you or your family. Anyone can contribute to a DAF at any point throughout the year and will receive an immediate tax deduction. The DAF has the option to grow its funds tax-free and to distribute charitable giving at any time.
To Do:
• Complete the contribution to a DAF by Dec. 31. You do not have to designate the funds this calendar year to receive the tax benefits.
Gifts of Land
With increased value for real property, many donors will find a gift of appreciated property made in 2024 attractive. A gift of appreciated land provides two benefits for the donor. First, the donor may receive a charitable contribution deduction based on the land’s fair market value. Second, the charity receiving the land is tax-exempt and can sell the asset tax-free. Therefore, if the donor donates the asset, the donor can bypass tax on the capital gain. For example, if the donor purchased development land ten years ago for $50,000 and the land is now worth $250,000, the donor would pay capital gains tax on $200,000 if they sold the property on their own. However, by giving the land to charity, the donor may receive a deduction for the FULL $250,000 in value and bypass the tax on the $200,000 potential gain.
Timing and Dates
• US Postal Service, must be postmarked by December 31
• FedEx or UPS, gifts must be received by the Sisters of Social Service by December 31
• Credit Card, “Fully processed,” i.e., approved by the credit card issuer by Dec. 31
• Wire Transfer: all funds must be received in SSS account by Dec. 31
• Gifts of stock/shares must be received in SSS account by Dec. 31
BEST Practices and Leaving a Legacy to the SSS
Update your will or living trust. Ensure that your designations are still appropriate and that your charitable intentions are noted.
Review your retirement plan beneficiaries. Assess your named beneficiaries to ensure you’ve considered your loved ones and favorite causes.
Review your life insurance policy. If you have a policy that is no longer a significant piece of your estate plan, consider making a gift by assigning ownership to The Sisters of Social Service or making us the beneficiary.
For further guidance about making meaningful, long-term gifts to the Sisters,
please contact Mary Hatton, Director of Development (818) 285-3358 or [email protected]
Information contained herein was accurate at the time of posting and is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.
