GIFTS OF STOCK/IRA DISTRIBUTION | Actors Fund

GIFTS OF STOCK/IRA DISTRIBUTION

There can be significant advantages to donating assets other than cash to The Actors Fund.

Gifts of Stock

Did you know you can make a gift of appreciated stock to The Actors Fund?

Why give stock over cash? If you donate stock that has increased in value since you bought it more than a year ago—and if you itemize deductions—you can take a charitable deduction for the stock’s fair market value on the day you give it away. You’ll also avoid capital-gains taxes on the increase in value over time, which you would have had to pay if you sold the stock then gave the charity the cash proceeds. See table below:

      SCENARIO 1   SCENARIO 2
      Donate stock   Donate cash
      Contribute securities directly to The Actors Fund   Sell securities and donate proceeds to The Actors Fund
  Fair market value of stock   $50,000   $50,000
Eliminate capital gains and Medicare surtax Federal long-term capital gains tax (20%) Medicare surtax (3.8%) paid. Assumes cost basis of $20,000 and long-term gains of $30,000   $0   $7,140
Donate more to The Actors Fund Charitable contribution/charitable deduction   $50,000   $42,860
Save more in taxes Value of charitable deductionless capital gain taxes paid (Assumes donor was in 39.6% federal income tax bracket)   $19,800   $9,833
The end result  Give $7,140 more to The Actors Fund and double the tax savings.  

In basic terms: The Actors Fund gets a larger gift, and you get a larger tax-deduction!

CONTRIBUTING FROM AN IRA ACCOUNT

If you are over the age of 70 ½ years old, you can make a contribution to The Actors Fund directly from a qualified IRA account.

What are the benefits? One of the key benefits of the direct charitable contribution from your IRA is that the distribution counts towards your Required Minimum Distribution or RMD (the IRS-determined minimum amount you must withdraw from your account each year). You can contribute more than your RMD to charity as long as you do not exceed $100,000 in a calendar year. It’s money the IRS requires you to withdraw, and by transferring directly to The Actors Fund you won’t be forced to pay income tax.

In basic terms: The Actors Fund gets generous gift, and you lower your tax-liability!

For more information or to give the gift of stock or IRA Distritbution, contact:

Jay Haddad, Manager of Planned Giving
jhaddad@actorsfund.org
917.281.5928