Gifts that reduce taxes
Qualified Charitable Contribution (QCD) or Charitable IRA Rollover
Many donors feel that the direct transfer of funds from an IRA is a great way to help families and make it a part of their legacy, and now it’s a permanent option. Here’s how it works:
Retirement plan gift
You can reduce or even eliminate tax liabilities on your retirement plan by naming Habitat for Humanity as direct beneficiary. The entire amount of your IRA, 401(k) or other retirement accounts may be taxed if you leave them to your heirs. Instead, consider giving them less tax-burdened assets like real estate and stock, and use retirement assets to create your legacy gift with Habitat.
Benefits:
Life insurance plan
If you have a life insurance policy that has outlasted its original purpose, you can use it to reduce your taxes and create a legacy gift for Habitat for Humanity.
Benefits:
Gifts of real estate
You may decide that the greatest gift you can make is to leave your home or farm to Habitat for Humanity. This kind of gift is ideal for people who intend to continue living in their home or property through their lifetime, but still want to make a charitable gift. You can leave this generous gift by signing an agreement with Habitat about maintaining the property so you can use it throughout your lifetime. You may even receive a tax deduction for your gift.
Gifts of stock
Stocks, bonds and mutual funds that have appreciated in value are among the best ways to ensure that Habitat can help reduce housing instability for families in your local community and around the world. You may receive a charitable income tax deduction for the full market value of the stock up to a maximum of 30 percent of your adjusted gross income and avoid paying the capital gains tax on any increase in the value of the stock.
Savings bonds
When you redeem savings bonds, you or the person to whom you leave your bonds will owe income tax on the appreciation. You can eliminate the income tax on bonds you own that have stopped earning interest and that you plan to redeem. Since Habitat for Humanity is tax exempt, 100 percent of your gift of savings bonds will support our mission to bring people together to build homes and strong communities.
Benefits:
Many donors feel that the direct transfer of funds from an IRA is a great way to help families and make it a part of their legacy, and now it’s a permanent option. Here’s how it works:
- You must be 70 ½ 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 Habitat for Humanity.
- Your gift is a transfer of funds from your IRA to 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.
Retirement plan gift
You can reduce or even eliminate tax liabilities on your retirement plan by naming Habitat for Humanity as direct beneficiary. The entire amount of your IRA, 401(k) or other retirement accounts may be taxed if you leave them to your heirs. Instead, consider giving them less tax-burdened assets like real estate and stock, and use retirement assets to create your legacy gift with Habitat.
Benefits:
- Eliminate potential estate tax on retirement assets.
- Eliminate income tax on retirement assets funded on a pre-tax basis.
- Receive potential savings on estate taxation from a donation tax deduction.
Life insurance plan
If you have a life insurance policy that has outlasted its original purpose, you can use it to reduce your taxes and create a legacy gift for Habitat for Humanity.
Benefits:
- Reduce your income taxes.
- Receive additional donation tax deductions by making annual gifts so that Habitat can pay the premiums.
- See firsthand how your gift supports families if we cash in the policy.
- Further the work of Habitat so that all people have a safe, affordable place to call home. If Habitat retains the policy to maturity, or you name it as a beneficiary, the proceeds of your policy will be paid to Habitat for Humanity once the policy matures.
Gifts of real estate
You may decide that the greatest gift you can make is to leave your home or farm to Habitat for Humanity. This kind of gift is ideal for people who intend to continue living in their home or property through their lifetime, but still want to make a charitable gift. You can leave this generous gift by signing an agreement with Habitat about maintaining the property so you can use it throughout your lifetime. You may even receive a tax deduction for your gift.
Gifts of stock
Stocks, bonds and mutual funds that have appreciated in value are among the best ways to ensure that Habitat can help reduce housing instability for families in your local community and around the world. You may receive a charitable income tax deduction for the full market value of the stock up to a maximum of 30 percent of your adjusted gross income and avoid paying the capital gains tax on any increase in the value of the stock.
Savings bonds
When you redeem savings bonds, you or the person to whom you leave your bonds will owe income tax on the appreciation. You can eliminate the income tax on bonds you own that have stopped earning interest and that you plan to redeem. Since Habitat for Humanity is tax exempt, 100 percent of your gift of savings bonds will support our mission to bring people together to build homes and strong communities.
Benefits:
- Reduce income tax.
- Reduce income tax and estate taxes for your loved ones.
- Create your lasting legacy by empowering families to become self-reliant homeowners who are engaged in their communities.
Please contact Greg Hull at 810-766-9089 ext. 210 or development@geneseehabitat.org if you have any questions.
