Stock Donations, Qualified Charitable Donations and Donor Advised Funds
Appreciated Stock Donations
Donating appreciated securities is a tax-wise way to make a significant impact. With a gift of stock, you can avoid capital gains tax while making a powerful difference for FFICM’s mission.
Benefits of ASD:
- Maximize your impact: A gift of appreciated stock allows you to potentially make a larger donation than you thought possible.
- Avoid capital gains tax: By donating stock you’ve owned for more than a year, you can bypass capital gains tax on the appreciation.
- Maximize your tax deduction: You can generally deduct the full fair market value of the stock, subject to IRS limitations.
- Easy to donate: We’ve partnered with Fidelity to make the process simple and straightforward.
Qualified Charitable Distribution (QCD)
After age 70 ½ years, you can make a QCD directly from a traditional IRA to FFICM, which can be more tax-beneficial than taking a regular IRA distribution. For 2025, the annual limit for a QCD is up to $108,000 per person, and this gift can satisfy your Required Minimum Distribution (RMD) and be excluded from your taxable income.
How to make a QCD
- Be at least 70.5 years old:You must be at this age when the distribution is made.
- Use a traditional IRA:The distribution must come from a traditional IRA, not a 401(k) or other retirement plan.
- Distribute directly to FFICM:The money must be transferred by your IRA custodian directly to FFICM’s account held at Fidelity. Checks made out to FFICM and sent by the custodian are acceptable, but checks made out to you that you then forward to FFICM are not.
- Keep it within the limit:The maximum annual QCD is $100K+ (indexed by year). This amount is subject to annual inflation adjustments.
Benefits of a QCD
- Avoids income tax:The amount you give as a QCD is not included in your taxable income.
- Reduces your RMD:A QCD can be used to satisfy all or part of your required minimum distribution (RMD) for the year.
- Lowers your Adjusted Gross Income (AGI):Reducing your AGI can help lower your tax bracket and potentially reduce Medicare premium costs.
- No itemized deduction required:The gift is not counted as an itemized deduction, which is beneficial for non-itemizers or those who can’t itemize deductions.
Donor Advised Funds (DAF)
Individuals are able to donate appreciated assets (stocks, bonds, mutual funds, real estate, business interests, etc.) to a Donor Advised Fund (DAF) during high earning years. The DAF can then be distributed to FFICM over time if desired.
- Immediate Tax Deduction: Donors receive a tax deduction in the year they contribute to the DAF, regardless of when the funds are distributed.
- Tax-Free Growth: Investments within the DAF grow tax-free, potentially increasing the amount available for charitable giving.
- Gifts from a DAF may be anonymous.
- Estate Planning Options: DAFs are effective for testamentary giving, allowing donors to leave a charitable legacy to FFICM through their estate plans. By naming a DAF as a beneficiary of an IRA or in a will or trust, donors can ensure their philanthropic goals are met after their passing.
Legal Disclaimer: FFICM does not provide tax or legal advice. Please consult with your independent legal, financial, or tax advisor before making a gift.