Boost Your Awareness of Giving Options
Thank you to everyone who responded to the Seattle University Gift Planning donor survey. The information shared is already shaping our services and communications for this year and beyond. We love hearing about your favorite Seattle U memories and how your education has impacted your life and career. It was also exciting to see so many donors requesting information on charitable gift annuities and various options for non-cash giving.
Cash may be an effective way to give (see 2021 Giving Incentives info below), but there are many advantages to giving publicly traded stocks, making charitable distributions through an IRA, or giving real estate. We encourage you, as always, to talk to your advisor about these options that can provide a boost in reaching your financial and philanthropic goals - especially if a lower tax bill is one of those goals.
Give Appreciated Stocks - When you transfer stock shares directly to Seattle U, you qualify for a charitable deduction for the current full value of those shares, not what you actually paid. You also bypass any capital gains tax associated with the appreciation. The charity then sells the stocks and is exempt from any capital gains tax. Click here for stock transfer instructions to Seattle U.
Over Age 70 ½? Consider giving through an IRA - Traditional IRA account owners over age 70 ½ can transfer up to $100,000 per year to qualified charities. For donors over age 72 ½, these charitable distributions count toward your required minimum distributions. When IRA distributions go directly to charity, they do not count as income, which can lower your income for tax purposes. Click here to learn more about IRA Giving.
2021 Giving Incentives
The CARES Act passed in 2020 included several charitable tax provisions to encourage giving. Congress has extended these provisions for 2021 including an increase in the deduction limit up to 100% of a donor's annual income for cash gifts (previously the deduction was capped at 60% of annual income) through December 31, 2021 only. If you make a cash gift you will be able to deduct more this year.
Real Estate - If you have a home, cabin, commercial property, or land that you no longer need, or you no longer want to manage, Seattle U can conduct a streamlined review to determine if a mutually agreeable transfer makes sense. There are several options for gifting real estate. It can be accepted outright for a charitable deduction of the full appraisal amount. Real estate can be put into a retained life estate, meaning you or a loved one continues to live there for as long as you like before the property is transferred to charity. A third option is a transfer to a charitable remainder trust prior to sale of the property. This allows you to receive income from the trust for life, or a certain number of years. The balance remaining in the trust is a gift to Seattle U.
Other Non-cash Assets - Similar to gifts of real estate, a variety of assets can be reviewed in a streamlined process to determine if they make savvy gifts for both the donor and the charity. This can include business interests, life insurance, intellectual property, and special collections such as art or coins.
Beneficiary Designations - When you name a charity as a beneficiary of a life insurance policy, an investment account, or retirement account, you rest in the knowledge that you are making a meaningful gift to future generations who will benefit from the services your favorite charity provides - no attorney required, and at no cost to your current budget. In some scenarios, you may even be saving your estate and heirs from paying estate tax or higher income tax.
Charitable Gift Annuities - Gift annuities are a great way to turn assets into income and receive a pro-rated charitable tax deduction at the same time. You make a lump sum gift to Seattle U, which can be cash, stocks, or bonds. In exchange, you receive reliable, set payments (monthly or quarterly) for your lifetime(s). The payments to you are determined solely by your age(s). Please contact the Office of Gift Planning for a personalized illustration of what a gift annuity with Seattle U would look like for you.
Sarah Finney and Heather Williams in the Office of Gift Planning are always happy to talk with you about these options. Click here to contact us. This information is provided for educational purposes only and is not considered tax or financial advice. We encourage you to consult with your advisors to determine the strategies that fit best with your goals and circumstances.