Make the Most of Your Charitable Gifts in 2024
While tax breaks are probably not your main reason for supporting Silver Cross Hospital, we have identified three proven ways to optimize your charitable donations this year.
1. Make qualified charitable distributions
With the sluggish economy over the past few years, we are seeing more and more friends of Silver Cross who are 73 or older support the Hospital with a qualified charitable distribution (QCD) from their retirement fund or IRA. Doing so helps satisfy the required minimum distribution (RMD) and the transfer isn’t counted toward your adjusted gross income.
You can give any amount (up to a maximum of $105,000) per year from your IRA directly to Silver Cross without having to pay income taxes on the money. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions. Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.
To initiate a QCD, click here for a sample letter to send to your plan provider.
Sometimes IRA administrators don’t always include the donor’s names on distribution checks. If you’re planning to make a distribution to Silver Cross from your IRA, please contact the Foundation in advance so we’ll be able to identify your gift. And please let us know if you want your gift used for a particular purpose.
2. Open a donor-advised fund
One of the most common tactics for increasing deductions for charitable donations is to open a donor-advised fund. These accounts let you donate a lump sum upfront to claim the deduction in that tax year, and then distribute the money to the Silver Cross Foundation and other not-for-profits over time. A significant contribution to the fund can enable you to itemize deductions, rather than take the standard deduction, and receive a tax benefit for your charitable giving.
To get started, talk with your financial planner. Several of our donors have funds set up through Fidelity, Schwab, Vanguard, Edward Jones, and the Community Foundation of Will County.
2. Donate appreciated stock
You can also make a significant charitable impact by looking at your portfolio and giving away appreciated stock you have held for at least a year to the Silver Cross Foundation. This gives you the opportunity to avoid paying any capital gains tax and deduct the fair market value. Use these shares to build up your donor-advised fund or give them directly to the Silver Cross Foundation. Because Silver Cross is 501(c)(3), we don’t have to pay taxes when liquidating the stock. The full amount goes to support patient care and advance healthcare in our community. We immediately sell the shares and make the proceeds available for whatever you choose to support – new hospital beds, Homer Glen emergency department expansion, construction of an outpatient cardiac catheterization lab, etc.
In contrast, if you sold the appreciated stock or mutual funds then gave the cash to the Foundation you would have to pay the capital gains tax on the appreciation, which would reduce the cash value of the gift.
When gifting stock or securities, you will need our account information for the transfer. Just give us a call (815) 300-7105 or email silvercrossfoundation@silvercross.org.
