Based on your annual gift and tax planning goals, your CPA or financial advisor can help you determine which of the strategies below will be of greatest benefit to you.
- Contribute appreciated stock instead of cash
If you have owned stock for more than one year and it has grown in value, you may be in line for two tax benefits: avoid taxes on the appreciated value and qualify for an income tax charitable deduction based on the market value of the stock. The stock will be valued based on the date it is received in Gonzaga’s account. Click here for Gonzaga’s Stock Gift Instructions.
Note: If you have cash available, you can replace the stock gifted thereby providing you with an updated cost basis. - Make a qualified charitable distribution (QCD) from your IRA
If you are 70½ or older, you can give any amount up to $105,000 per year from your IRA directly to Gonzaga University. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions. Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower Medicare premiums and decrease the amount of Social Security that is subject to tax. Also, if you are required to take minimum distributions, you can use this transfer to satisfy all or part of your required minimum distribution. Click here for instructions on how to make a qualified charitable distribution from your IRA. - Sell depreciated assets and donate the cash.
If you have stocks that have fallen in value (below your cost basis), it is best to sell them first and then donate the cash. This allows you to record the loss as a tax deduction and qualify for an income tax deduction for the gift.
Note: Gonzaga must receive your gift by Dec. 31 for your donation to qualify this year. If you have check-writing features on your IRA, please be aware that your check must clear your account by Dec. 31 to count toward your required minimum distribution for the calendar year.
Charitable Deduction Limitations:
Although charitable contributions are 100% deductible, the maximum amount a donor can claim in any one year is limited to:
- 60% of your adjusted gross income (AGI) for gifts of cash.
- 30% of your adjusted gross income (AGI) for gifts of long-term appreciated property such as stock.
- Charitable deductions that exceed these limits in the year of the gift may be carried forward for up to five additional years.
The Countdown Is On:
As the end of the year approaches, we are happy to help ensure that you realize the greatest benefit for your hard-earned assets. Please contact Chris Stiles or Elizabeth Kennedy at 509-313-6141 or plannedgiving@gonzaga.edu.