As we rapidly approach the end of the year, many of our donors are thinking about year-end gifts. Direct donations, made via check, cash or credit card, are always appreciated and always tax deductible. But if you are looking for a way to maximize both your giving impact and your tax benefits, consider some of these more unique donation methods.
Company Matching
Before you give, ask your company if they match donations made by employees. You could potentially double your impact without increasing your donation amount, and that’s a win for everyone!
Donor Advised Fund
A donor advised fund allows you to get an immediate tax break for money submitted to the fund. The money grows tax free, and then you can recommend that grants be sent to your favorite charities. At Chanje Movement we frequently receive gifts from Donor Advised Funds (DAFs). When we know the original contributor, we give them a soft credit on their constituent account.
Stocks and Securities
Donating appreciated stock is beneficial to you and to Chanje Movement. It gives you the opportunity to save on capital gains and income taxes. Due to these savings, your donation can be larger making your impact in Haiti even greater than if you were to sell the stock and donate the cash.
Trusts
There are many different ways to set up charitable trusts. These allow you to give in ways that benefit charities and provide tax benefits to you. You can set up trusts that give on your behalf while you are alive, or you can designate trust funds to charity after your passing.
Make Qualified Charitable Distributions from your retirement account
If your retirement account has a Required Minimum Distribution, you can donate that directly to Chanje Movement. This is a Qualified Charitable Distribution or QCD. Making a donation as a QCD counts towards “withdrawing” your RMD for the year. And the amount of your donation isn’t counted toward your taxable income, which may help you save on income tax.
If you have specific donation related questions, please email donations@chanje.org or give us a call at 949-333-0500.
