As we approach the end of the year, there is an underlying theme of giving back that is woven in the messaging all around us. As a non-profit organization, the Visiting Nurse Association (VNA) & Hospice Foundation relies on the generosity of our donors and their desire to give back all year long. Their motivation to help those in need is what allows the VNA to provide home health, hospice and community health services to everyone, even the under and uninsured in our community.
We are so thankful for the philanthropic spirit of this community and wanted to be sure to share how donations to non-profits can be beneficial to donors from a tax perspective. We like a win-win situation where a donor can support the VNA and possibly save on their year-end taxes! Donations received by the VNA & Hospice Foundation by December 31st can be listed as a charitable deduction on your taxes for that year, which might provide some tax savings depending on your specific situation.
Another way that you might be able to realize some tax savings is by donating appreciated stock. When you donate shares of stock that have appreciated in value to the VNA, you can avoid the tax on the financial gain while also claiming 100% of the value of the contribution as a charitable deduction. Transferring stock could earn you two to three times the tax savings versus donating cash. The VNA & Hospice Foundation has partnered with donatestock.com to make donating stock fast, safe, and easy! In 10 minutes or less, you can enter the information needed to transfer the shares of your appreciated stock to the VNA from your brokage account. If you prefer to go through your own broker, please call our office at 772.978-5581 and we will give you the necessary information.
Another possible tax-savvy strategy for year-end giving is taking a Qualified Charitable Deduction (QCD) from your IRA. Sometimes called an “IRA Charitable Rollover,” this strategy allows you to make a tax-free gift while satisfying your Required Minimum Distribution (RMD). If you are 70 ½ years or older you can transfer up to $100,000 per year from your IRA directly to the VNA & Hospice Foundation. If you do not have an RMD yet, a QCD gift offers all the benefits of an itemized income tax charitable deduction, even if you don’t itemize. For those 73 or older who must take a Required Minimum Distribution, a QCD gift satisfies that requirement without increasing your income and your tax liability. A call to your IRA administrator to request a Qualified Charitable Distribution from your IRA to the VNA & Hospice Foundation is all it takes to get this process started!
At the VNA & Hospice Foundation, we are constantly amazed at the support we receive from our donors. If there are tax advantageous strategies that will be beneficial when someone gives us financial support, we want to be sure they are known because we like win-win situations. So as the world focuses on giving back this holiday season, we wanted to equip you with information that might help you when you support a non-profit before the end of this tax year.
For more information about donating stock to the VNA, go to vnatc.org/waystogive/stock-donations/.
For more information about donating to the VNA with a Qualified Charitable Deduction through an IRA, go to: plannedgiving.vnatc.org/IRA.
Please note: Not everyone has the same financial situation, and these strategies will work for some individuals and not others. We encourage you to speak to your financial advisor when thinking about your year-end giving to discuss some of the abovementioned options. They will advise which strategy is best for your individual situation.