As a member of Plan’s giving society, you understand the importance of building a better future with girls around the world. Here are a few powerful — and even tax savvy — ways you can support this work while meeting your unique philanthropic and financial goals.
1. Donor-advised fund
There’s been a lot of buzz over the past couple of years around the donor-advised fund. According to the 2022 Donor-Advised Fund Report by the National Philanthropic Trust, the number of individual DAFs grew by 28%. DAFs are the fastest growing giving vehicle in the U.S., with contributions skyrocketing to $45.74 billion in 2021, a nearly 30% increase from 2020.
Not only have contributions to DAFs increased, but grants from DAFs to charities also increased substantially since the COVID-19 pandemic, increasing by about 60% over the past two years, according to the National Philanthropic Trust. There are still many needs to be met, though, especially in the countries where Plan works.
If you have established a DAF, there has never been a better time to put your charitable dollars to work. Please note that gifts from DAFs often arrive at our office without any identifying information included. To make sure your gift is applied according to your wishes, please notify us of your intent to direct a gift from your DAF. And thank you!
2. Gifts of appreciated securities
Stock giving works by transferring shares of publicly traded securities, such as stocks, bonds and mutual funds, to a charity like Plan.
If you choose to sell your securities first and give a charity the proceeds, you may trigger capital gains tax, an unnecessary and potentially substantial cost to you. On the other hand, if you’ve held your securities for more than a year and they’ve appreciated in value, giving the securities directly to a charity like Plan can save you money — and increase the impact of your gift by up to 20%. You can also claim a fair market value charitable deduction in the year you make the gift!
3. IRA
One way to use your retirement account to maximize the tax benefit of your charitable contributions is by making a charitable IRA rollover. A charitable IRA rollover (also called a qualified charitable distribution) allows you to transfer a portion of your IRA directly to Plan, reducing your taxable income and making a difference at the same time!
You can make a QCD starting at age 70 and a half to take maximum advantage of the tax benefits available to you. If you’re required to take a required minimum distribution, your QCD will count toward that distribution, decreasing your income tax liability this year and your RMDs in years to come, which means a lower tax bill.
You can also designate Plan as the beneficiary of your retirement account and enjoy one of the most tax-wise ways to support an organization you care about. This way, you maintain control of your retirement assets during your lifetime, and, at your death, your gift comes to Plan tax-free.
Thank you for helping to clear the barriers blocking girls’ paths so they can create their own futures and change the world.
