If you are 71 or over, you can make a tax-free gift to us from your traditional IRA. You won't pay income tax on the amount of your gift. Tell your traditional IRA administrator that you want to make a "qualified charitable distribution" to us and give him or her our federal tax ID, 43-1103761, and our legal name, Columbia Art League. The administrator will send your tax-free gift directly to us. It must be postmarked by December 31! Thank you very much!
Please note: We do not advise on personal income tax issues. Please consult your tax advisor for full information. Only your advisor can give you definitive advice based on your personal financial circumstances.
Smart Gifting Tips
CAL Board Member Emeritus Lon Brockmeier, a Raymond James financial advisor, shares smart gifting tips.
One way to support CAL programs is gifting us assets that have appreciated in value such as stocks, bonds, mutual funds or other securities. Here’s an example: a supporter donates 200 shares of stock valued at $10,000 to CAL by transferring her shares into our investment account. Assuming she purchased her stock years ago for $2,500, by donating the stock to CAL she not only avoids paying the capital gains tax on the $7,500 of appreciated value, she also reduces her taxable estate by $10,000 and additionally qualifies for a $10,000 income tax deduction for the full value of the appreciated stock!
Please note: to qualify as a donation of capital gains property, the security must have been held for more than one year. While donations of capital gains property are generally valued at fair market value at the time of the donation, the annual tax deduction for gifts of capital gains property to CAL are limited to 30 percent of one’s adjusted gross income.
As a tax exempt organization, CAL is then able to sell our supporter’s donated shares without having to pay capital gains taxes. Our supporter benefits in three ways, and your Columbia Art League benefits with increased funding for our programming to the community.
If you would like to investigate such a strategy to maximize the impact of your gift, please talk to us to explore your opportunities.