At the Roanoke Cultural Endowment, our vision is bold: to build a $20 million endowment that provides stable, long-term funding for Roanoke’s arts and cultural organizations. Thanks to you and the collective efforts of our community, we’ve already achieved a third of this ambitious goal! And as the calendar year comes to an end, there are still ways for you to make a lasting impact on the arts in Roanoke with a gift you can potentially benefit from!
Here are four tax-efficient ways to support our mission this holiday season:
- Donating Appreciated Securities: When you give long-term appreciated securities (securities held for one year or more) rather than cash, you can avoid potential capital gains taxes. This allows you to give more at the same net cost. With certain limitations, you may receive a fair-market-value tax deduction on securities donated.
- Giving From Your IRA: Individuals aged 70½ or older, who donate from an Individual Retirement Account (IRA) can satisfy their Required Minimum Distributions (RMDs). This way, you can give up to $105,000, per plan owner, without adding a penny to your taxable income.
- Bunching Contributions to Itemize and Utilizing a Donor-Advised Fund: Currently, few taxpayers benefit from itemizing because of the standard deduction increase from the 2017 Tax Cut & Jobs Act. However, by “bunching” larger-than-normal charitable contributions into a single year, a taxpayer may benefit from itemizing that year, before returning to the standard deduction in a subsequent year. Donor-advised funds may be particularly appealing to donors who seek to “bunch” larger-than-normal deductions in a particular year and desire to make future grants nonprofits.
- Legacy Giving: Gifts through a bequest, trust, or beneficiary gifts to charity can provide a lasting impact and reduce your taxable estate. Establishing a Charitable Remainder Trust (CRT) allows donors to receive an income stream from the trust for a period of time (potentially over a lifetime), with the remainder going to a beloved charitable organization. A CRT may provide immediate tax benefits while supporting your philanthropic goals and providing supplemental income.
Each of these options helps us continue our work for generations to come while also potentially providing you with tax benefits. For questions or more information, visit our Ways to Give page or contact our Office at 540-556-9123.