Did you know year-end charitable giving can have a substantial positive impact on your tax situation and overall estate plan? If you are considering giving a gift of a Catholic education, here are some tips from the Catholic Education Foundation:
1. Timing of Gift
Make sure checks to your favorite charity are dated and postmarked no later than Dec. 31, 2018. Single gifts of $250 or more require a substantiation letter from your charity recipient per IRS regulations.
2. Gifts of Stock
Transferring gifts of stock electronically is the easiest and quickest method. Visit http://cefjoliet.org/Ways_To_Give/Stock_Donation for stock gift instructions to restrict your gifts to the CEF for Catholic school scholarships. Appreciated stock is most favorable as a gift since you can eliminate most if not all capital gains and take a charitable deduction on the fair market value of the gift.
3. Gifts of IRA Required Minimum Distribution
If you are 70½ or older, you can make a tax-free distribution from your IRA to your favorite charity. This is called a qualified charitable distribution, also known as the ‘IRA Charitable Rollover.’ Following this method, you can avoid having your RMD added to your taxable income for the year. There is a $100,000 limit on such transactions which are not subject to income tax. Even better, you can still give up to this $100,000 amount through a qualified charitable distribution even if your RMD is a lesser amount.
4. Planning Your Estate
Consider remembering the CEF in your will. The end of a calendar year is often a timely reminder that a simple will is critical. Who will care for your minor children if father and mother die simultaneously? Do you wish for your favorite charities to continue enjoying your lifetime of support?
Contact your legal or financial advisors for assistance in planning charitable gifts with tax and other financial implications. Visit http://cefjoliet.org/Ways_To_Give or contact the Catholic Education Foundation at (815) 221-6127 or firstname.lastname@example.org for general information.
Catholic Education Foundation : 815.221.6127 : 16555 Weber Road, Crest Hill, IL 60403: http://cefjoliet.org/