BVWHC, Taxes, and YOU!
Philanthropic intentions are important for many families and individuals, according to a study by Giving USA, $1B is given to charity daily indicating the importance of donating for so many U.S. families. Boulder Valley Women’s Health Center (BVWHC) is a non-profit, 501(c)3 organization, and has relied on our community's donations for decades. We are grateful for the continued support, and forever grateful to our donors for their unwavering generosity and kindness.
As you finish up your taxes for 2020, BVWHC felt it was important to mention some of the tax incentives that support philanthropic desires and assist with the tax benefits of doing good in your community and the world. All tax strategies should be discussed with your professional CPAs and attorneys, but please see below for a great place to start.
Tax Strategies that Can Be Used for Qualified Charitable Gifts
Many people know they can deduct donations to charity from their income taxes, but increasing your knowledge of tax planning strategies can maximize your giving impact. Check out these easy ideas:
Long-term appreciated assets—BVWHC has a Charles Schwab & Co account, of which we gladly accept donations of appreciated assets. If you donate long-term appreciated assets like bonds, stocks or real estate to charity, you generally don’t have to pay capital gains, and you can take an income tax deduction for the full fair-market value. It can be up to 30 percent of your adjusted gross income. Please reach out to Heidi Halpern if this is a strategy you are interested in exploring and we can provide you with the transfer instructions, as well as BVWHC account number at Schwab.
Qualified Charitable Distributions (QCDs) – This strategy involves gifting directly to the charity from your Required Minimum Distribution. If done correctly (directly to the 501(c)3 organization) the income will not be included on your tax return, but there will also not be a deduction. It is a great tax strategy for gifting. An individual donor can contribute up to $100,000 per year in QCDs, if that individual is 70½ years old or older.
Estate Planning - By naming Boulder Valley Women’s Health Center (BVWHC) in your will or as a beneficiary of a qualified insurance policy, retirement plan or trust, you reduce or even eliminate the burden of estate tax for your heirs.
Donor-advised fund (DAF) - A donor-advised fund is an account that has been established to accomplish charitable giving intentions on behalf of a family, or an individual. BVWHC always welcomes donations directly from DAFs. Boulder Valley Women’s Health Center would be honored to receive donations from individuals and families using these accounts for charitable intentions. The donor giving to the DAF should receive an immediate tax deduction in the year of the gift and the gift can be spread over the next several years. There are many tax strategies to discuss with your tax professional when considering these accounts, but they are a very effective tool.