Assets You Didn’t Know You Had
Here are some assets you may not have considered and the impact they can have on your taxes when you use them charitably.
IRA Distribution
- If you are 59½ or older, you can take a distribution from your IRA and then make a gift to De Smet Jesuit without penalty. If you itemize your deductions, you can take a charitable deduction for the amount.
- If you are 70½ or older, you can give any amount up to $100,000 per year from your IRA directly to De Smet Jesuit. You will not pay income taxes on the transfer. If you are 72 or older, you can use this transfer to satisfy your required minimum distribution.
To do: We must receive your gift by December 31 for your donation to qualify this year. If you have check-writing features on your IRA, please be aware that your check must clear your account by December 31 to count toward your required minimum distribution for the calendar year.
Appreciated Stock
You may enjoy two tax benefits with a gift of appreciated stock: Avoid paying taxes on the appreciated value, and qualify for an income tax charitable deduction based on today’s market value, when you itemize.
To do: Complete all transfers by December 31. This includes electronic transfer, hand-delivery of the securities, or mailed stock and stock power (mailed separately for security).
Donor Advised Fund
Contribute to a donor advised fund and enjoy a tax savings on that amount when you itemize.
To do: Complete the contribution by December 31. You do not have to designate the funds this calendar year to receive the tax benefits.
Good End-of-Year Planning
Check these off your to-do list to end the year on an organized note.
- Update your will or living trust. Review your will or trust for any life change such as a birth, death, marriage, or a move to a different state.
- Review your retirement plan beneficiaries. Remove any beneficiary on your life insurance or retirement plans who is deceased or is a former spouse, and consider adding a charitable organization like De Smet Jesuit.
- Review your life insurance policy. If you have a policy that is no longer a significant piece of your estate plan, consider making a gift by assigning ownership to De Smet Jesuit or making us the beneficiary.
- Durable power of attorney. Make sure your durable powers of attorney for financial matters and health care are current. A copy of the financial power of attorney should be given to your appointed agent, while a copy of your health care power of attorney should be provided to both your agent and health care providers.
- Safe-deposit box. Catalog the contents of your safe-deposit box. Give a written copy to a trusted family member and note any items you are holding for someone else.
- Bank or brokerage accounts. Name designated heirs or De Smet Jesuit as a recipient of bank or brokerage account proceeds after your lifetime.*
- Charitable contributions. If you’ve included a gift to De Smet Jesuit in your estate plan, review the details of your gift and let the school and your loved ones know of your intentions. This will guarantee that your wishes are carried out after your lifetime.
*State laws govern payable on death accounts and transfer on death accounts. Please consult with your bank representative or investment advisor if you are considering these gifts.
How to Make a Tribute Gift
If you know someone who values the meaningful work we do at De Smet Jesuit, consider making a donation in his or her honor. These tribute gifts are also a great way to remember loved ones who are no longer with us. There are three easy ways to give a tribute gift to De Smet Jesuit, none of which require a trip to the mall:
- Make a gift today. An outright gift can help fund our immediate needs or an upcoming project. The financial benefits include an income tax charitable deduction when you itemize deductions on your federal income tax return, and the possible elimination of capital gains tax.
- Make a gift through your estate plan. Include a gift in your will or living trust, stating that a specific asset, certain dollar amount or percentage of your estate will pass to De Smet Jesuit after your lifetime in honor of your loved one.
- Make a gift that lives on forever. Honorary endowments can be made now or through your estate plan. Endowments are structured so that a small portion of your gift, rather than the whole amount, is used each year to fund a particular purpose. To perpetuate the fund forever, the majority of the fund always remains intact and is invested for the future.
What’s on Your List?
As we approach the end of the year, we’re happy to help ensure that you realize the most tax benefit. Please feel free to contact Jeff Cernicek '92, Director of Development, at 314-567-3500 x 1267 for any questions.