Smart Ways to Give

Increase your charitable gift-and your tax deduction-with one simple strategy

Make a larger impact by donating long-term appreciated securities, including stock, bonds and mutual funds, directly to charity. Compared with donating cash or selling your appreciated securities and contributing the after-tax proceeds, by transferring stock directly, you may potentially increase both your gift and your taxes.

Other benefits:

• Eliminate capital gains taxes and the Medicare surtax, which combined could be up to 23.8%
• Take an immediate income tax deduction in the amount of the full fair market value* if you itemize your deductions
• Maximize support to your favorite charity

*For contributions of complex or non-publicly traded assets, generally fair market value is determined by a qualified appraiser in compliance with the IRS

A special opportunity for those 70½ years old and older

You can give any amount (up to a maximum of $105,000) this year from your IRA directly to a qualified charity such as KCKCC Foundation without having to pay income taxes on the money. Gifts of any value $105,000 or less are eligible for this benefit and you can feel good knowing you are making a difference. This popular gift option is commonly called the IRA charitable rollover, but you may also see it referred to as a qualified charitable distribution, or QCD.

Why Consider This Gift?

• Your gift will be put to use today, allowing you to see the impact of your donation.
• If you are required to take minimum distributions, you can use your gift to satisfy all or part of your obligation.
• You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, but 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.
• And, for those who are at least 73 years old, QCDs count toward the IRA owner's required minimum distribution (RMD) for the year.

How to set up a QCD

Any IRA owner who wishes to make a QCD  should contact their IRA trustee so the trustee has time to complete the transaction before the end of the year.

Normally, distributions from a traditional IRA are taxable when received. With a QCD, however, these distributions become tax-free as long as they're paid directly from the IRA to an eligible charitable organization.

Make a gift to scholarships by designating KCKCC Foundation as the beneficiary of:

• Life Insurance Policies 
• Commercial Annuities 
• Retirement Plans  

*Pro Tip: Contact the administrator of your retirement plan, insurance policy or bank account for a change of beneficiary form and return the completed form with the percentage you choose to leave to KCKCC Foundation. Let a member of the KCKCC Foundation team know you have made this commitment so we may thank you. 

Secure your future and support student scholarships!

With a Charitable Gift Annuity

Creating opportunities for students can benefit you, too! Charitable Gift Annuities provide a way to create a legacy for future students now—and receive dependable payments for life—in exchange for a gift of at least $10,000 in cash or appreciated securities to the KCKCC Foundation. The rate of the payments is determined by age and number of annuitants (one or two).

Sample one-life CGA rates

Effective 1/1/2024; subject to change. Rates are set by the American Council on Gift Annuities.

A charitable remainder trust is a way to pursue philanthropic goals while still generating income for yourself and your family. Tax exempt and irrevocable, they are designed to reduce your taxable income.

KEY TAKEAWAYS

• A charitable remainder trust is a tax-exempt irrevocable trust designed to reduce your taxable income.
• A charitable remainder trust dispenses income to one or more noncharitable beneficiaries for a specified period and then donates the remainder to one or more charitable beneficiaries.

How Does a Charitable Remainder Trust Work?

Assets that can be donated to a charitable remainder trust include cash, stocks, real estate, private business interests, and private company stock. The partial tax deduction a trustor receives for their donation is based on the trust’s type and term, the projected income payments to the charitable beneficiaries, and interest rates set by the Internal Revenue Service (IRS) that are determined by assumptions about the growth rate of trust assets.

Charitable remainder trusts are irrevocable, which means that they cannot be modified or terminated without the charitable beneficiaries’ permission.