Do you own property you no longer wish to pay tax on or maintain? Do you own stocks you’d like to remove from your portfolio to achieve a slightly different balance? Before you sell, consider whether these assets could make a rewarding impact on our work in a tax-advantaged way.
Appreciated property held long-term can be an excellent gift option because it offers a double tax benefit—not only do you bypass any capital gains tax, but the gift qualifies for a charitable income tax deduction for the full amount of the property.
Although IRAs are retirement savings tools, they also offer unique opportunities for meaningful charitable gifts: qualified charitable distributions (QCDs) and beneficiary designations.
IRA owners age 70 ½ or older can use a traditional QCD to make a direct transfer from an IRA to the IU Foundation without any tax due on the transfer, allowing the entire amount to support the IU Foundation’s work. In addition, the transfer counts toward your required minimum distribution (RMD) if one is due (generally, at age 73).
IRA owners age 70 ½ or older may wish to explore other QCD options, including a one-time distribution of up to $54,000 (in 2025) directly from an IRA to create a new charitable gift (CGA) or charitable remainder trust (CRT).
Beneficiary designations can also work in a donor’s favor. If you’re contemplating a legacy gift and own assets such as appreciated property in addition to your IRA, you may want to consider leaving IRA assets to IU and appreciated property to your family. Here’s why: Retirement assets left to beneficiaries are fully taxable to them when they are withdrawn, and there are requirements for the timing of withdrawals. By contrast, taxes on appreciated property are due only when the asset is sold and there are no requirements for when that property must be sold.
One of the benefits of charitable giving is the income tax deduction that the donor receives. While it may not be the primary motivation behind giving to charity, it is certainly a philanthropic perk if you understand the details.
Generally, gifts to the IU Foundation are eligible for a federal income tax deduction when you itemize your tax return. The deduction for gifts of cash is limited to 60 percent of your adjusted gross income (AGI) for the tax year (aggregate limit). For a gift of appreciated securities or real estate, the deduction limit is 30 percent of AGI. For gifts that exceed these limitations, you can carry forward the excess deduction for up to five consecutive years.
