There are many ways to support a local charity. You can volunteer your time, give items directly to a charity, or donate money. How you choose to give is deeply personal, but those who donate financially may find their contributions go further with a Donor-Advised Fund. David Mitchell, CFP® with Edward Jones in Easley recently discussed the benefits of creating a Donor-Advised Fund:

What is a Donor-Advised Fund, and how does it work?

“A Donor-Advised Fund is a charitable-giving tool that you create with a financial services institution by making a $10,000 (or more) irrevocable contribution to start the fund. You can contribute appreciated assets and investments (you avoid paying capital gains tax), proceeds from the sale of a business, or cash to start your Donor-Advised Fund. You immediately qualify for a tax-deduction. Your fund is invested and grows tax-free, and you can even make additional donations to your fund over time,” said Mitchell.

What charitable organizations qualify to receive support
from your Donor-Advised Fund?

“You can choose which IRS-approved, public charity (or charities) to support,” said David. “And, you choose when and how much to support
the charity of your choice from your Donor-Advised Fund.”

How long does a Donor-Advised Fund last?

Mitchell said that “annual disbursements from a Donor-Advised Fund aren’t required by law, so your fund can stay in existence, and grow, until you decide to allocate it. Should you die, you decide who takes over your Donor-Advised Fund, and what charities to support in your absence.”

Be sure to reach out to your financial advisor or a financial services institution for more information on creating a Donor-Advised Fund.

For more information, contact Mark Eisengrein, Director of Planned and Major Giving, 864-850-7094 x108.

If you are age 72 or older, the IRS requires you to take a required minimum distribution each year from your tax-deferred retirement account. Did you know that you can donate all, or a portion of your Required Minimum Distribution directly to United Way of Pickens County or another charity? It's called making a Qualified Charitable Distribution.

A Qualified Charitable Distribution is a transfer of funds from your IRA payable directly to a charity. Amounts distributed can be counted toward satisfying your annual Required Minimum Distribution. The Qualified Charitable Distribution is excluded from your taxable income. This isn’t the case with a regular withdrawal from your IRA, even if you use that money to make a charitable donation later.

Here are four ways that a Required Minimum Distribution can increase your taxes:

1. A Required Minimum Distribution can push you into a higher tax bracket. Since distributions are ordinary taxable income, it can push some retirees into a higher marginal tax bracket.

2. Medicare surtax. Required Minimum Distributions also increase the taxpayer's modified adjusted gross income, which could trigger the 3.8% Medicare surtax.

3. Taxing Social Security. Even modest withdrawals from a retirement account can cause Social Security benefits to become taxable for federal income tax, up to 85% for single filers with income above $34,000
annually or married couples with income above $44,000.

4. Medicare Part B & D Premiums are calculated using a taxpayer's modified adjusted gross income from the prior year. So large Required Minimum Distributions can cause sharp increases to your Medicare costs, with the wealthiest taxpayers paying up to 80% of the cost.

Be sure to contact your local accountant or attorney to discuss your specific situation before making a donation.

For more information, contact Mark Eisengrein, Director of Planned and Major Giving, 864-850-7094 x108.

Give the gift that keeps on giving

Planned Giving Tools

BEQUEST: A bequest is the act of leaving something in your will. Learn more about the different types of bequests and recommended language by clicking here.

CODICIL: A codicil is a document used to make an amendment to your will. Download and attach this document to your will to add United Way to your estate plan.

GIFTS OF STOCK: If you own stocks or other publicly-traded securities that are worth more than what you paid for them, it may be cost-efficient to donate shares of that stock or mutual fund, rather than mailing a check to us. United Way of Pickens County will accept a stock or mutual fund gift of any kind, and we recommend initiating that gift by December 20th, so that the transaction can take place before December 31st. Click here to download instructions (PDF) on transferring a stock or mutual fund gift to United Way of Pickens County. If you have specific questions, contact Mark Eisengrein at 864-850-7094, ext. 108.

FREE WILL: Through our partnership with United Way Worldwide, you can create a free will through FreeWill.com. Simply visit their website and utilize the guide that will walk you through the 20 minute process. As a reminder, you are invited to make a final gift to United Way of Pickens County through your will. This is an easy way to give from your remaining assets, and it will allow you to support those in need in our community for generations to come. Once you have completed your Free Will, be sure to print a copy, sign it, and have a couple of people witness your signature to make it official. Don't forget to place your original, signed will with your other important legal and financial documents, in a place where family members can find it one day. You may want to give a copy of your official will to anyone whose name is listed in your will. Once your Free Will is official, we recommend that you have a local attorney review the contents of your will, so that it complies with all your wishes.

You are invited to add your name to the growing list of members of the Heritage Society by contacting Mark Eisengrein at 864-850-7094, x 108.