Because many stocks have increased in value over time, you may hold stocks with substantial appreciation. If you're considering a major gift or end-of-year gift, a gift of public company stock to United Way of Pickens County provides two major benefits.
First, there is a charitable deduction for the value of the stock. Second, United Way does not pay tax on the sale of the stock so you bypass the capital gain.
Two fairly common reasons for making a substantial gift of stock are that you may have sold an appreciated asset with a large capital gain or you have good income. If you have a large gain or substantial income, you may want to offset that gain or income with a charitable deduction to United Way through a gift of stock. Because you receive both the charitable deduction and a bypass of capital gains tax, there is a double benefit for your gift of stock.
How to Make a Stock Gift
Most stock is held in an account at a brokerage firm. Relatively few people now wish to hold the actual certificates in their safety deposit box. If you hold actual certificates, you may mail the certificate and a signed stock power in separate envelopes to our address, PO Box 96, Easley, SC 29641.
Because most stock is held by the brokerage firm, the stock is transferred directly from the account at the brokerage firm to our account with Edward Jones. To make the transfer, click and download this form which contains all of the information you or your stock broker will need to direct your stock gift to United Way of Pickens County.
For any gift more than $200, we will issue a receipt.
Make a Qualified Charitable Distribution from your IRA
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.
Contact Us
Have questions or want to move forward with your gift? Please complete the form below to be put in touch with a member of the United Way team: