Donate to charity? Keep the Money: 3 Ways to Donate

Updated: December 11, 2024, 2:07 pm PST

OF THE GIFT. We don’t just talk to family and friends. THERE ARE ALSO MANY WAYS TO SUPPORT YOUR FAVORITE CHARITIES THIS TIME OF YEAR. AND THIS MORNING OUR FINANCIAL EXPERT, CFP and VICE PRESIDENT OF CAP TRUST, CATHERINE MCCALL JOINS US. Thank you for joining us. HAPPY TO BE HERE. OK. That’s why we often think of cash as king. BUT DONATIONS CAN REALLY VARY. YES. So three really great ways to donate to your favorite charities without having to write a check. OK. A donor-advised fund, a qualified charitable distribution. AND THEN GIFT. HIGHLY RATED STOCK YOU KNOW. OK. So the market is up this year. This is a very interesting way. So let’s get into each one. So talk a little about donor-recommended funds. OK. So a donor-advised fund creates a separate account from your regular investment accounts. IDEALLY, DONATE IN A FLUID AMOUNT IF YOU WANT. AND YOU ALWAYS GET A LARGE DEDUCTION IN A SINGLE YEAR. AND THE MONEY GOES TO THE PARTICULAR ACCOUNT, YOU CAN INVEST THE MONEY FOR THE LONG TERM. This is a great option for people on the cusp of retirement who may earn a lot and have had a high-earning year. You sold something. You want to make a big withdrawal, but then you can spend that for years. YOU CAN GIVE SMALL AMOUNTS TO YOUR FAVORITE CHARITIES EVERY YEAR FOR AS LONG AS YOU WISH. So again, this is another great option, especially if you also have fixed income securities. THAT’S CORRECT. THINKING ABOUT THE FUTURE OKAY. So how about a qualified charitable distribution? YES. SO IF YOU ARE OVER 70.5 YEARS OLD, YOU CAN START. BUT FOR THOSE OF US OVER 73 WHO NEED TO WITHDRAW A REQUIRED MINIMUM DISTRIBUTION FROM YOUR RETIREMENT ACCOUNT, WHICH IS YOUR IRA, YOUR 401K, YOU MUST WITHDRAW MONEY AT THE END OF THE YEAR. If you are this age, you can meet some of these requirements by donating directly to a qualified charity. So if you needed to withdraw $40,000 from the account this year and chose to make a charitable qualified charitable distribution of $10,000, you would have only earned taxable income of $30,000. So it reduces the amount of taxes you have to pay taxes on. OK. And you benefit the charity. NATURALLY. YES. Last but not least: estimated inventory. I didn’t realize you could actually donate this. THAT’S CORRECT. So let’s say you bought NVIDIA three years ago and now you’re a millionaire and doing great. CONGRATULATIONS. A BAJILLION PERCENT CORRECT. YOU CAN GIVE THE INDIVIDUAL SHARES IN IT TO YOUR FAVORITE CHARITY IF YOU KNOW TO CONTACT YOUR FAVORITE CHARITY AND FIND OUT WHAT THEIR BROKER ACCOUNT NUMBER IS. You can actually gift the shares outright and get a deduction in return. It also allows them to liquidate it for free, right? If you see a lot of growth in a stock that has exploded over the last many years, it will be expensive for you to sell that stock yourself because of the capital gains. So they basically have it in their hands. YOU CAN SELL IT WITHOUT CAPITAL GAINS TAXES AND THEN BENEFIT FROM THE VALUE. Well, definitely. Again, you can definitely find other ways to do this instead of just writing a check, folks. IT’S MUCH EASIER. VERY NICE. All right, Catherine, we always have AP

Donate to charity? Keep the Money: 3 Ways to Donate

Updated: December 11, 2024, 2:07 p.m. PST

‘Tis the season for giving and we’re not just talking about what to get your family and friends, but there are also many ways you can give back to your favorite charity. Kathryn McCall, CFP and vice president at CapTrust, said you can put some away in your wallet because she has three preferred giving methods, including a donor-advised fund, the qualified charitable distribution and the transfer of highly appreciated stock “If you have a good income year for you “You might think about setting up a donor-advised fund to get a big fundraising pull this year,” McCall said. “The Donor-Advised Fund is a unique option that allows you to make a large contribution to this account tax-deductible upfront without having to distribute the money to a specific charity at that time.” Watch the video above to hear McCall’s tips on qualified charitable distributions and transferring highly valued shares. For more coverage of top California stories, click here | Download our app | Subscribe to our morning newsletter

SACRAMENTO, Calif. –

‘Tis the season for giving and we’re not just talking about what to get your family and friends, but there are also a variety of ways you can give to your favorite charity.

Kathryn McCall, CFP and vice president at CapTrust, said you can put your wallet away because she has three preferred giving methods, including a donor-advised fund, Qualified Charitable Distribution and highly appreciated stock transfer.

“Donor-Advised Funds to Save Taxes – If this has been a good income year for you – you might think about setting up a donor-advised fund to get a big charitable deduction this year,” McCall said. “The Donor-Advised Fund is a unique option that allows you to make a large contribution to this account tax-deductible upfront without having to distribute the money to a specific charity at that time.”

Watch the video above to hear McCall’s tips on qualified charitable distributions and transferring highly valued stock.

For more coverage of California’s top stories, click here | Download our app | Subscribe to our morning newsletter