Donating appreciated stock to the Northwest Association for Blind Athletes can have significant tax advantages!
Before beginning the donation process, please contact Sue Warren, Sr. Director of Development & Communications at 360.984.5506 or [email protected], so that our broker can be alerted to the incoming gift.
Donating appreciated stock to the Northwest Association for Blind Athletes (NWABA) can have significant tax advantages! If you sell appreciated stock, you will be subject to capital gains tax which is assessed based on the difference between the purchase price and the sale price. However, if you donate the appreciated stock directly to NWABA, you avoid paying capital gains tax altogether. As an additional benefit, you receive a charitable deduction for the full value of the stock at the time of the donation, reducing your taxable income.
It is the policy of NWABA’s investment committee to sell donated stocks. That said, this committee reviews each stock donation, and reserves the right to hold shares if there is significant long-term growth potential.
If our broker is not advised before the transfer is initiated, it is assumed to be fraudulent and will be rejected.
A Qualified Charitable Distribution (QCD) is a type of charitable donation made directly from your pre-tax IRA Individual Retirement Account (IRA) to a qualified charity.
Did you know that if you are age 72 or older, you are required to take a distribution from your IRA each year, called a Required Minimum Distribution (RMD)? If you choose to donate all or part of your RMD to NWABA, that distribution is referred to as a QCD. The full gift value of a QCD is not considered taxable income and support’s NWABA’s mission.
For those who itemize, you receive a tax deduction for the value of the donation (up to $100,000), lowering your adjusted gross income.
Lowering your adjusted gross income can affect your tax bracket, reduce the amount of Social Security benefits subject to tax, and potentially lower the cost of Medicare premiums.
If you take the standard deduction on your taxes, the donated amount is excluded from your taxable income.
Please keep in mind that a QCD must be initiated by your retirement fund directly and mailed directly to NWABA. If the funds pass through you, in any way, the tax benefits outlined in this section do not apply.
Gifting a whole life insurance policy that’s outlasted its original purpose, while you’re alive, to NWABA is an excellent way to support this mission.
Depending on the specific details of the individual policy, the finance committee will determine if it is in the best interest of the organization to continue to make the premium payments or sell the policy to a third-party broker. In either case, you receive a charitable deduction for the surrender value of the policy.
or would like more information about our estate planning assistance program, please contact Sue Warren, Sr. Director of Development & Communications at 360.984.5506 or [email protected].
NWABA encourages supporters to consult with their financial advisor or attorney before considering a planned gift of any nature.
Including a gift to NWABA in your will or a trust is a generous and simple way to make a transformational impact.
NWABA has developed a straightforward, yet comprehensive program designed to assist our supporters in navigating the estate planning process.
Without our volunteers, we would not be able to serve as many people as we do.
NWABA offers many ways for you to make a profound impact on individuals of all ages and abilities, who are blind or visually impaired.