The end of the year is nearing and you may be wondering how you can maximize your tax benefits. Did you know that you can get a tax break while also helping the animals you love and care about? With recent charitable giving incentives introduced through recent legislation, some donors may see expanded deduction opportunities and higher caps for certain types of contributions. These updates make year-end giving especially timely, allowing you to take advantage of newly increased tax efficiencies before December 31.
Here are a few ways to give before the end of the year:
1. Make a Qualified Charitable Distribution (QCD) from Your IRA:
If you’re 70½ or older, a QCD from your IRA can be a smart, tax-efficient way to give. These gifts can count toward your required minimum distribution and may reduce your taxable income all while helping animals in need. A QCD is a powerful way to create an immediate impact. A few things to keep in mind:
- Your transfers must originate from a traditional IRA or from a retirement account.
- Your plan provider must issue the donation directly to the charity.
- Your gift can be any amount up to $108,000 per person ($218,000 per couple).
- Even if you do not itemize deductions, you will benefit from giving by avoiding income tax on your distribution!
- The transfer may be made in addition to other charitable giving you have.
2. Stock Gifts:
Giving stocks is another meaningful way to give. By donating publicly-traded stock directly, you may avoid capital gains tax while making a larger contribution than you might be able to with cash alone. It’s a win-win for you and the animals who benefit from your generosity. For more information, download our Stock Transfer Instruction Form here.
3. Give Through Your Donor Advised Fund (DAF):
A donor advised fund lets you recommend grants to causes you care about throughout the year. Giving through a DAF is a simple, flexible, and tax-efficient way to give. If you have a DAF and want to give to KHS, you can use DAF Direct which is a safe and efficient way to recommend grants directly from your DAF. If your donor advised fund doesn’t participate, reach out to your financial advisor to designate your gift to KHS! Drop the Development Team a note so we can make sure and thank you!
Of course, every donation regardless of size, structure, or type helps us continue our lifesaving work. Your support means warm beds, full bellies, medical treatment, and hopeful futures for animals who need them. As we wrap up the year, we’d love to show you firsthand how your compassion changes lives. If you’d ever like to see our work in action, we would love to give you a tour of our facilities. Feel free to reach out to our Donor Engagement Manager, Georgia Hobbs, at ghobbs@kyhumane.org or call 502-515-3147!