1-800-395-1087
Gifts of Stock Now Can Reap Tax Benefits
Recent rallies in the stock market are making gifts of securities more attractive to donors as they seek to maximize tax-benefits for 2009 while also making a significant gift to help the children of St. Jude.
Many securities have appreciated and are worth much more than they were just a few months ago. Some donors who bought stock last fall when prices were falling may find they can benefit from a deduction that includes increases since that time.
Only gifts completed between now and the end of the year can help reduce the after-tax cost of such gifts for the 2009 year.
Valuable benefits available in making a gift of appreciated stock to St. Jude include avoiding capital gains tax on the appreciated value of the stock. The amount of charitable income tax deduction is equal to the full fair market value of the stock upon transfer.
Making a gift of stock is easy to do by following two simple steps:
- Provide your broker or financial advisor with the following wiring instructions: DTC ID #0226 for further credit to St. Jude Children’s Research Hospital Account #003-314773 at First Tennessee Brokerage.
- Call us at 1-800-877-5833 ext. 2413 or e-mail us at giftsofstock@stjude.org at the time you make the transfer so we can properly acknowledge your gift for tax purposes.
Charitable Gift Annuities Gain Attention
Charitable Gift Annuities are attracting renewed attention as a way to support qualified charities like St. Jude while also providing life-time income and an immediate a tax deduction to the donor.
The November issue of Money Magazine, also highlighted by cnnmoney.com, refers to CGAs as an advisable financial option for readers to consider now. CGA rates are becoming more attractive at a time when lower interest rates and the recent stock market surge make it difficult to find the best places to place extra cash.
When you make a gift to St. Jude Children’s Research Hospital with a gift annuity, you will receive fixed payments for the rest of your life – at attractive payment rates – no matter what happens to the economy. You also can receive an immediate tax deduction for part of your gift.
You can establish a St. Jude CGA with a gift of $10,000 or more. The payout rate is determined by the age of the donor(s), with the minimum age of participants set at 65.
To learn more about CGAs, e-mail us or give us a call at (800) 395-1087.
Deadline Nears for IRA Gifts
By acting now, individual 70 ½ or older can receive tax benefits by making charitable distributions from their Individual Retirement Account (IRA) funds to St. Jude.
The Emergency Economic Stabilization Act of 2008 allows individuals 70 ½ and older to make charitable gifts of up to $100,000 directly from their IRAs without paying taxes on the contribution. The provision is set to expire at the end of this year, so you must complete the transfer by December 31 to enjoy tax benefits for 2009.
Qualified charitable distributions
- Will not be considered as part of your Adjusted Gross Income (AGI) for tax purposes
- Can count toward your mandatory minimum withdrawals
- Are not subject to the deductibility ceiling (50 percent of AGI)
- Are exempt from the “2 percent rule” that requires itemized deductions be reduced by 2 percent of AGI in excess of $150,500.
Keep in mind that everyone’s circumstances are different, and state as well as federal tax laws may affect your plans.
We strongly urge prospective donors to consult with their attorney, financial advisor, estate planning professional, accountant or other appropriate professional before making any decisions based on information we provide through this Web site, printed materials or other sources.
