Direct Transfers: Stock, IRA or 401(k)

Here are some options that can save you taxes while you support our libraries. Remember: always consult with your tax advisor first.

Stock transfer

When you donate stock directly to the Foundation’s broker, you pay no capital gains tax or commissions. Let’s say you have 100 shares of Feelgood Industries that you bought at $10 and the stock has risen to $110. If you sell the stock and write us a check, you may have to write the Federal and State Governments a check for $2,000, the tax on a $10,000 capital gain.

Instead, if you transfer the stock directly to the Foundation’s broker, the Foundation gets the full $11,000, you pay no capital gain taxes, and you get a deduction of $11,000 on your tax return.

IRA or 401(k) Direct Transfer

If you are 70 ½ years or older, direct transfers from an IRA or 401 (k) to the Foundation are a qualified charitable distribution (QCD), deductible from your gross income. You reduce your taxable income on amounts over your standard deduction. This transfer is ideal for charitable retires who have more than enough cash on hand. You have to take these yearly deductions whether you need the cash or not. Talk to your broker.