IRA Charitable Rollover
Many donors feel that the direct transfer of funds from an IRA is a great way to donate, and now it’s a permanent option. Here’s how it works:
- You must be 70 ½ years or older.
- An individual may transfer up to a total of $100,000 per year and a married couple may give up to $200,000.
- Your gift must be transferred directly from the IRA account to Greater Rochester Habitat for Humanity.
Your gift is a transfer of funds from your IRA to Greater Rochester Habitat for Humanity, so it does not create taxable income for you and is not considered a charitable tax deduction. The transfer of funds counts towards your annual Required Minimum Distribution from your IRA.
Donor-advised Funds
Donor-advised funds (DAF) are investment accounts used for charitable giving. A DAF allows individuals to maximize the tax benefits of charitable giving by bundling—making several years’ worth of charitable donations in the same year to get the total combined amount of itemized deductions.
DAFs are easy to set up—you make a gift of cash, stocks, bonds or property by transferring your assets to a tax-exempt sponsoring organization, such as a public charity. This qualifies you for an immediate federal income tax charitable deduction for the full value of the gift.
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Gifts of Real Estate
You may wish to transfer ownership of real estate to Greater Rochester Habitat for Humanity. In doing so, you remove the property from your estate and relieve yourself of any future management worries. In addition, you can deduct the appraised value of the property from your income tax liability and avoid capital gains tax liability.
Gifts of Stock
Stocks, bonds, and mutual funds that have appreciated in value are among the best ways to help. You may receive a charitable income tax deduction for the full market value of the stock (up to a maximum of 30% of your adjusted gross income) and avoid paying the capital gains tax on any increase in the value of the stock.
Gifts of Cash
This type of gift is simple and eligible for a charitable tax deduction when you file your taxes.
Gift Language
Legacy Circle Members are individuals who've demonstrated forethought and generosity to ensure that as part of their legacy, more families in our community will know the security and hope of owning a home.
