Charitable Giving & Tax Planning
Although cash is the most common form of contributing to your favorite charity, there are many other ways to make contributions now or in the future. Here is a listing of some ideas you may want to bring to your tax professional or financial planner for consideration
Appreciated securities are a smart means of contributing because you will take the appreciated value as a deduction on your personal tax return and not have to pay the capital gains tax that would be due to the government if you sold those securities. Please contact us for the Conway Farms Golf Club Foundation trust account where these securities can be transferred if you would like to contribute in this manner.
Some employer companies will match the gifts that their employees (and sometimes even retirees) make to qualified charitable organizations. Please ask your employer as this is a quick way to double your contribution (in most cases) just by filling out a form!
IRA and 401K Plans
The benefit of making a contribution from your IRA or 401K Plan is that the contribution, if made directly from the IRA or 401K, can be counted toward your minimum required distribution (for those over age 70 ½). There would be no tax deduction for the assets, but there would be no income either, thus saving on tax dollars. The lower income can help avoid tax on Social Security benefits, higher Medicare premiums, higher tax brackets and surtaxes on investment income. Please consult your tax advisor/financial planner if this sounds like a means of charitable giving that would benefit your financial situation.
Donor Advised Fund
Allocating money to a Donor Advised Fund is similar to a Private or Family Foundation but with the added benefits of easy access, simple structure, privacy of anonymous contributions and less administrative expense. Another benefit of these funds are that you take the charitable deduction in the year that you make the deposits into the fund, not when you elect the charity to distribute funds to. This provides tax planning opportunities for the taxpayer. The funds are held, invested and advised by the sponsoring organization such as Vanguard or Fidelity, for example. You select who your funds are granted to but they process it for you.
This structure is a legal entity with tax reporting requirements, required annual minimum grants, and excise tax on earnings. The benefits of this approach are complete control over every aspect of the fund.
Beneficiary of Will or Trust
Something to consider to provide a legacy of educational scholarships for years after you have passed. Thank you for all of your past and future contributions to the Conway Farms Golf Club Foundation! For more information on the history of the Foundation and the scholarship recipients, please see the Foundation tab on the Club website.