Prioritize year-end philanthropy to save on taxes
During the holidays, charitable giving is a great way to spread goodwill and make a positive impact. Not only does it benefit organizations and individuals that receive support, but you can also earn valuable benefits, such as owing less in taxes in 2025.
CASH GIFTS
Consider making monetary donations to Mary Washington and other charitable organizations before the end of the year. Many employers provide matching gift programs, which may still be available even if you or your spouse are retired. If applicable, obtain a matching gift form from your employer and submit it to UMW along with your donation.
Donating up to $100,000 can fulfill your annual IRA required minimum distribution (RMD). Although you won’t be able to claim a deduction, you’ll benefit from not having to pay taxes at your current rate. Ensure that your administrator makes the distribution directly to Mary Washington.
CAPITAL ASSETS
Assess what you already own, such as stocks, property, furniture, art, coin or stamp collections, jewelry, or other precious metals. If you intend to donate something other than publicly traded stock, a qualified appraiser can help determine its estimated value.
A gift of a capital asset to a qualified charity offers several benefits:
- You avoid paying capital gains tax.
- The asset is removed from your estate, which can reduce the tax burden for your beneficiaries.
- There are savings on the costs of maintaining, insuring, and repairing the asset.
- You may be eligible for an income tax deduction of up to 30% of your adjusted gross income for the current year. If the deduction exceeds this limit, you can carry it over and use it over the next five years.
- You experience the satisfaction and joy of knowing your asset is being used in a meaningful way.
ESTATE PLANNING
Now is an ideal time to review your will and account records to ensure beneficiary information is up to date. If you’ve included Mary Washington in your estate plans, please reach out to the Office of Gift Planning so we can assist in honoring your wishes.
LEARN MORE
Visit https://giving.umw.edu/make-a-gift for information about cash gifts, IRA distributions, matching gifts, and direct stock transfers. If you have questions or would like to learn more about giving options, please contact Jan Clarke at jclarke@umw.edu or 540-654-2064. As always, consult with your legal and tax professionals.
– Article written by Assistant Director of Advancement Communications Jill Graziano Laiacona ’04 for the Gift Planning Connections newsletter, Fall 2024
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