It’s Better to Give and Receive

It’s Better to Give and Receive 

Are you getting all the tax advantages of your generosity?

A man and a woman high five after making a charitable donation.

By now you know that donating to a cause you care about comes with physical and mental health benefits, but the clock is running out to cash in on philanthropy’s financial benefits.

Your gift may qualify for a tax break if you itemize deductions on your federal income tax return.

IRA gifts

If you are 59 1/2 or older, you can take an early distribution from your IRA to make a gift to Scripps without penalty. You can then take a charitable deduction for the amount on your taxes. If you are 70 1/2 or older, you can directly give up to $100,000 a year from your IRA without paying income taxes on the transfer. If you are 72 or older, you can use this transfer to satisfy your required minimum distribution. The fine print: Your gift must be received by December 31 to qualify this year. If you have check-writing features on your IRA, your check must clear your account by December 31 to count toward this year’s required minimum distribution.

Stock gifts

Donating via appreciated stock can give you double the tax benefits. You’ll avoid paying taxes on the appreciated value of the stock, plus when you itemize, you’ll qualify for a charitable deduction based on today’s market value. Again, transfers must be completed by December 31. This includes electronic transfer, hand delivery of the securities or mailed stock and stock power (mailed separately for security).

Donor-advised funds

If you know you want to give back, but you’re not sure what you'd like to support, a donor-advised fund may be your best option. Setting up a donor-advised fund lets you transfer cash now and enjoy the tax savings, then as your fund builds, you can make recommendations on what causes you’d like to support. You don’t have to designate funds this calendar year to receive the tax benefits, but you do have to complete the contribution to the fund by December 31.

This content appeared in San Diego Health, a publication in partnership between Scripps and San Diego Magazine that celebrates the healthy spirit of San Diego.

Learn about more ways to support Scripps through our Here for Good capital campaign.