Tax-Efficient Giving

Discover the significant tax advantages of supporting the Albert Haller Foundation through creative charitable giving strategies. Below are some key approaches to consider:

Qualified Charitable Distributions (QCDs)

Once you reach age 70½, you become eligible to make Qualified Charitable Distributions (QCDs). These are direct transfers from your pre-tax retirement accounts to a qualified charity, such as the Albert Haller Foundation. QCDs provide multiple tax benefits:

• Avoid Income Taxes: The transfer does not count as taxable income on your tax return.
• Satisfy RMD Requirements: Starting at age 73, QCDs can be applied toward your Required Minimum Distribution (RMD).
• Annual Limits: Individuals can transfer up to $100,000 annually per person via QCDs.

Eligible Accounts: Pre-tax IRAs, 401(k)s, and Profit Sharing Plans.

Gifting Highly Appreciated Assets

Donating assets, such as stocks or real estate, that have increased in value since their purchase can provide substantial tax savings:

• Avoid Capital Gains Tax: Donors avoid capital gains taxes, which can be as high as 20% federally (and subject to Washington State’s 7% tax on gains exceeding $270,000 starting in 2024).
• Deduct Fair Market Value: Donors can deduct the full fair market value of the donated assets, up to 30% of their Adjusted Gross Income (AGI).

Ideal Assets to Gift: Highly appreciated stocks, real estate, art, or other investments with significant unrealized gains.

Charitable Remainder Trusts (CRTs)

A Charitable Remainder Trust is a powerful giving vehicle that provides financial benefits to the donor during their lifetime and supports the charity afterward:

• Lifetime Income: The CRT pays the donor (or designated beneficiaries) an annual income for life or a specified term of years.
• Tax Advantages: Donors receive a current-year tax deduction for a portion of the contribution and avoid capital gains taxes on assets sold within the trust.
• Legacy Giving: After the donor’s passing, the remaining trust assets are distributed to the charity.

Ideal Assets to Contribute: Highly appreciated stocks, real estate, art, or other investments subject to significant capital gains taxes.

Important Considerations

The information provided here is for educational purposes only and does not constitute financial, tax, or legal advice. Please consult your tax and legal advisors to understand how these strategies may benefit your specific situation.

Let’s Start the Conversation

If you’re interested in learning more or wish to discuss making a contribution, please reach out to our Foundation’s investment advisor:

John Haley

Duncan & Haley, Ltd.

john@duncanhaley.com

(206) 625-2658