As the current year closes and a new tax year begins, consider making a charitable gift to the North Florida Land Trust. This year has presented Americans with the highest inflation in more than 40 years, along with rising interest rates and frequent volatility in U.S. stocks and other asset classes. Despite these conditions, donors have continued to support charities and causes that are important to them steadfastly. Below are a few ways to continue giving with maximum charitable impact and minimize your taxes before year end.
Making a Cash Gift
When donating cash to North Florida Land Trust, a donor can generally deduct up to 60% of your adjusted gross income. If you prefer to give with a check delivered by the U.S. Postal Service, your gift must be postmarked by midnight on Dec. 31 to qualify as a gift for this tax year.
Making a Gift of Stock and Appreciated Securities
By giving stock that has been held for at least a year, the 15 percent capital gains tax typically incurred can be eliminated if you sell. In addition, stock donations to charities, like the North Florida Land Trust, are eligible for a charitable tax deduction on both federal and state taxes, adding up to potentially significant savings.
Satisfying an IRA Required Minimum Distribution (RMD) through a Qualified Charitable Distribution (QCD)
Beneficiary designation IRAs or other qualified retirement plans are often one of the most tax-efficient assets to leave to charity because they are taxed heavily when left to heirs. When you designate a nonprofit, such as the North Florida Land Trust, as the beneficiary of an IRA as part of your estate plan, 100 percent of the gift will be available to support your philanthropic interests.
Contributions must be received at North Florida Land Trust by December 31, 2022, to qualify as a charitable deduction on 2022 tax returns. Some non-cash asset contributions have review and processing times spanning several weeks or longer. A donor wishing to make a 2022 QCD should submit the request by the end of November to ensure the gift is received by December 31.