Charitable Giving Is More Than Just a Tax Deduction
Changes in the tax law still prompt questions about deductions and tax brackets. Lost in the discussion has been the variety of other benefits that drive our supporters to make a charitable gift in a particular way.
Navian Hawaii’s charitable gift annuity provides an immediate income tax charitable deduction where some supporters may realize tax savings from that deduction. But many people find the other benefits of a charitable gift annuity to be of equal or greater value. This gift can benefit those who are thinking about retiring early or planning for retirement, while still supporting Navian Hawaii and here’s how:
- Increased cash flow. Common assets used to fund a charitable gift annuity are from savings, CDs, or long term appreciated stock. These assets are usually not generating much in interest or dividends and when used to establish a charitable gift annuity the cash flow may likely increase significantly.
- Tax free income payments. When cash is contributed, the payments received from a charitable gift annuity will be part tax-free and part ordinary income. The tax-free portion lasts for a period of years, determined by your life expectancy at the time the gift is made.
- Capital gains tax avoidance. When long-term appreciated stock is contributed, some of the capital gain (the portion attributable to the charitable gift being made) is avoided.
If you are interested, we’ll be happy to provide information on the income payments you’d receive. Contact our Philanthropy Manager at 808.791.8084 or development@navianhawaii.org.
This information is provided for educational purposes only. It is not offering professional tax, legal or accounting advice. As always, please talk with your advisor to discuss whether this gift option might work for you.