Gifts of Appreciated Assets

Giving certain types of noncash items that have appreciated in value can offer significant tax advantages. When you give appreciated assets such as real estate, publicly traded stock, or virtual currency you’ve held for more than one year, you typically qualify for a deduction based on the full fair market value of the asset given without having to pay income tax on the appreciation of the asset. This avenue of giving is especially beneficial because Calvary, as a tax-exempt organization, can sell these gifted assets without paying tax on the gain. The combination of you, the giver, being able to deduct the full fair market value of the asset donated, together with the exclusion from tax on the gain, results in both a maximum tax deduction for you and maximum funds available to Calvary for reaching our community and changing our world!

Qualified Charitable IRA Distributions

If you’re age 70½ or older, you may have a tax-advantaged opportunity to contribute funds directly from your traditional (non-Roth) individual retirement account (IRA) to a qualifying charitable organization. Sometimes referred to as a “qualified charitable IRA distribution,” this giving method allows you to distribute up to $105,000 in 2024 from your traditional IRA account directly to a qualifying organization such as Calvary without being taxed on the distribution. (The limit of $105,000 is indexed for inflation annually.) To qualify, the distribution must be transferred directly from your IRA account to the qualifying organization. A check written on your IRA account and made payable to Calvary is considered a direct transfer. (You cannot withdraw the funds yourself and then make the gift.) Additionally, qualified charitable IRA distributions typically count toward your annual required minimum distributions, which generally begin at age 73 under current law. If you’re interested in giving to Calvary from your traditional IRA account, your IRA account administrator can provide you with information on how to make a qualified charitable IRA distribution.

In addition to the giving methods described above, there are other tax-advantaged nontraditional giving methods available. Your tax advisor can help you determine the best ways to accomplish your giving objectives while being wise about tax implications. If you have a question of any kind, simply contact our Engagement Team at Engagement@CalvaryFTL.org or 954-556-4499.