This year, The Magdalen House has served countless individuals while continuing to strive toward its purpose – to help alcoholic individuals and their families find hope in recovery – thanks to generous supporters like you.
As you begin to consider your End of Year giving opportunities, it is important to understand the possible benefits of diversifying your charitable giving this holiday season.
Contribute appreciated non-cash assets instead of cash
One of the most effective tax-smart strategies for achieving maximum charitable impact is donating appreciated non-cash assets held for more than one year. Contributions of this kind can help you achieve maximum philanthropic impact and help you reduce your taxes. Many donors find they’re able to give up to 20% more to charities of their choosing because of the potential to eliminate capital gains tax.
Non-cash assets include, but aren’t restricted to:
- Publicly traded securities
- IPO and restricted stock
- IRAs, retirement accounts
Bunch two years of contributions into 2023
Bunching your intended charitable contributions for both 2023 and 2024 into one year (2023) can be a beneficial strategy for those whose total itemized deductions will be below the level of the standard deduction. In addition to achieving a larger charitable impact in 2023, this could produce a larger two-year deduction, depending on income level, tax filing status, and giving amounts each year. Click here for more information on “bunching”.
Make a Qualified Charitable Distribution (QCD) of IRA assets
Whether you itemize your deductions or take the standard deduction, individuals age 70 ½ and older can direct up to $100,000 per year tax-free from their IRAs to operated charities (as defined by the Internal Revenue Code) through QCDs. Amounts contributed as a QCD can be counted toward satisfying your required minimum distribution (RMD) and are excluded from your taxable income.
If you would like to speak to someone about donating to The Magdalen House, please contact Whitney Mask at whitney@magdalenhouse.org.
Every donation helps to provide life-saving recovery services to alcoholic individuals and their families at absolutely no cost. On behalf of The Magdalen House, we wish you and your family a safe and joyful holiday season. Your support is the greatest gift of all.
*For specific questions regarding tax benefits associated with charitable giving and how it affects your personal 2023 federal tax filings, please consult your financial advisor.
