Another Way to Donate

Donate Stock and Maximize Your Charitable Impact

At Charity Anywhere Foundation, we provide donors with a convenient and tax-efficient way to support our mission: donating appreciated stocks. By contributing stocks that have increased in value, donors can make a significant impact while also enjoying substantial tax benefits.

How It Works

When a donor donates appreciated stock to Charity Anywhere, they receive a donation receipt for the full market value of the stock at the time of the donation. This allows the donor to claim a charitable deduction equal to the stock’s value, while also avoiding capital gains tax on the appreciated amount.
Example:
Suppose you bought 500 shares of a stock for $5 each. Now, the stock’s value has increased to $20 per share. If you donate these shares to Charity Anywhere, you’ll receive a receipt for the total value of $10,000 (500 shares x $20 per share). Additionally, you won’t have to pay taxes on the $7,500 gain since the stock’s value rose from $2,500 to $10,000. This allows you to make a more substantial donation and enjoy tax savings simultaneously.

 

The Donation Process

  1. Contact Us: Reach out to Charity Anywhere to inform us of your intent to donate stock.
  2. Transfer the Stock: The donor’s broker transfers the stock directly to our brokerage account.
  3. Receive Your Receipt: We will provide a receipt for the full market value of the stock at the time of donation, which can be used for tax purposes.

Why Donate Stock?

Donating stock is a simple yet powerful way to support Charity Anywhere’s mission while maximizing your tax benefits. It allows you to make a larger donation than if you sold the stock and donated the cash proceeds, as you avoid paying capital gains tax. This means more funds go towards helping those in need.

 

A Proven and Simple Process

We’ve facilitated stock donations in the past, and the process has proven to be straightforward and efficient. Our team is here to assist you every step of the way, ensuring a smooth and rewarding experience.

Using Qualified Charitable Distributions (QCDs) to Donate Your Required Minimum Distribution (RMD)

For retirees with IRAs, a Qualified Charitable Distribution (QCD) is an excellent way to support Charity Anywhere Foundation while meeting your Required Minimum Distribution (RMD) obligations. This strategy not only helps our foundation but also provides significant tax benefits.

What is a QCD?

A Qualified Charitable Distribution (QCD) allows individuals aged 70½ or older to donate up to $100,000 directly from their IRA to a qualified charity, like Charity Anywhere, without including the distribution in their taxable income. This donation can also count towards the donor’s RMD for the year.

Benefits of Using QCDs

  1. Tax Savings: Since QCDs are excluded from taxable income, they can lower your overall tax burden. This is particularly beneficial if you do not itemize deductions, as the QCD still provides a tax benefit.
  2. Satisfies RMD Requirements: QCDs can be used to satisfy your RMD, allowing you to avoid the additional income tax that comes with taking an RMD as cash.
  3. Supporting a Good Cause: Your donation will go directly to supporting Charity Anywhere’s mission, making a positive impact on those in need.

How to Make a QCD

  1. Check Eligibility: You must be at least 70½ years old to make a QCD.
  2. Contact Your IRA Custodian: Inform your IRA custodian that you wish to make a QCD to Charity Anywhere. The funds must be transferred directly from your IRA to the charity.
  3. Provide Information: You’ll need to provide our foundation’s details to your custodian to ensure the funds are properly directed.
  4. Receive a Receipt: Charity Anywhere will issue a receipt for the donation, though the QCD itself will not be reported as taxable income.

Example:

Let’s say you’re 72 years old and have an RMD of $5,000 for the year. Instead of taking this amount as a taxable distribution, you can make a QCD of $5,000 to Charity Anywhere. This way, you fulfill your RMD requirement and the $5,000 is excluded from your taxable income, lowering your tax bill. This is reported when you file your taxes.

Making a Difference

QCDs are a simple and effective way to support Charity Anywhere while benefiting from tax savings. By choosing to donate your RMD through a QCD, you can have a meaningful impact without increasing your taxable income.