Dontation Options to consider
IRA charitable rollover returns for 2013: Donors aged 70½ or older are eligible to move up to $100,000 from their IRAs directly to qualified charities without having to pay income taxes on the money. You may make a qualified charitable distribution on or before Dec. 31, 2013, to qualify for a 2013 gift. Because this legislation was enacted in 2013, Congress provided two special transitional rules for 2012 gifts:
- Qualified distributions made before Feb. 1, 2013, may be counted retroactively for the 2012 tax year.
- A taxpayer who took a distribution from the IRA in December 2012 may make a contribution to a qualified charity before Feb. 1, 2013, and treat that as a direct transfer.
Perhaps you'll consider including a gift to the Center for the Study of Economics in your will or living trust. These gifts are better known as a charitable bequest. Following are the benefits this type of gift provides:
- Simplicity. Just a few sentences in your will or trust are all that is needed. The official bequest language for CSE is: "I, [name], of [city, state, ZIP], give, devise and bequeath to the Center for the Study of Economics [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."
- Flexibility. Because you are not actually making a gift until after your lifetime, you can change your mind at any time.
- Versatility. You can structure the bequest to leave a specific amount of money or leave a percentage of your estate to CSE.
- Tax Relief. If your estate is subject to estate tax, your gift is entitled to an estate tax charitable deduction for the gift's full value.
Charitable Remainder Trust - you can receive income each year for the rest of your life from assets you give to the trust you create. Your income can be either variable or a fixed amount. After your lifetime, the balance in the trust goes to the charities of your choice.
Your Possible Benefits
- A partial charitable income tax deduction
- Potential for increased income
- Up-front capital gains tax avoidance
The information on this website is not intended as legal or tax advice. Therefore, we encourage you to speak with your legal and/or tax advisor prior to selecting one of these donor options.