Even though it’s the beginning of October, holiday activities are just around the corner.  That means it’s time to begin planning Year-End gifts to the nonprofits and charities in our community. As always, Waco Foundation is here to maximize charitable giving for donors.

Waco Foundation facilitates charitable giving year-round by accepting and administering non-cash assets and complex gifts like:

  • Publicly Traded Stock
  • Closely Held Business Interests
  • IRA Charitable Rollovers
  • Donor Advised Funds
  • Planned/Legacy Gifts
  • Electronic Currency
  • Farm and Agriculture Equipment
  • Year-End Giving Advice

Year-End Giving Tips

Stock

A donor may avoid capital gains tax by donating appreciated stocks, bonds and/or mutual fund shares they have held “long-term” (more than one year) to a nonprofit. The donor is able to claim a federal income tax charitable deduction for the full market value of the security donated rather than the lesser amount they originally paid for the security. It’s important to remember the donor should give the appreciated stock directly to the charity to avoid triggering a taxable transaction. Waco Foundation is able to accept and liquidate stock and forward the proceeds to your favorite charity. 

Donor Advised Funds

Donor Advised Funds are a great giving tool that provide donors maximum flexibility.  A donor establishes a Donor Advised Fund with an initial charitable gift of cash, securities or other qualifying property, and receives a charitable deduction.  The donor is then able to make year-round distribution recommendations to various qualified charities of their choice.  A Donor Advised Fund can be an ideal match for donors who bundle their itemized deductions. 

IRA Charitable Rollover

The IRA Charitable Rollover provision allows individuals who have reached age 70 1/2 to donate up to $105,000 from their Individual Retirement Account (IRA) directly to a public charity. The donor is then able to exclude the direct rollover from taxable income. 

Gifts of Business Interests

When the time comes to transfer or sell a family business, there are many reasons to consider including charity in the plan prior to transfer.  By gifting a business interest directly to charity, whether it is held in the form of closely-held stock or an interest in a limited partnership or limited liability company, the donor is able to claim a charitable deduction for the appraised value of the business interest donated.

For more information about year-end giving options, contact Waco Foundation at 254.754.3404 or visit wacofoundation.org.