Smart year-end giving: Donate securities or IRA funds

Dec 17, 2019

With 2020 fast approaching, time is running out to take advantage of two smart year-end giving options: donating IRA funds, stock, or mutual funds to The Salvation Army.

Giving securities or IRA funds is easy to execute, and both gift options fuel The Salvation Army’s mission to fight for good.

What’s more, donating from your portfolio can yield excellent tax benefits.  

“Not only do you avoid capital gains taxes and receive a charitable deduction at current stock value, you invest in families fighting poverty and provide hope for a better future,” said Craig DiLorenzo, Business Development Director at 3M and a Salvation Army advisory board member. 

Here’s a closer look at each gift option:

Donating securities

Giving stock or mutual funds is as simple as making a phone call to The Salvation Army at 651-746-3504 or 800-456-4483 ext 3504.

Once arrangements are made to transfer your securities to a Salvation Army account, they will be sold and the proceeds will be used to change lives.

These donations can yield remarkable tax benefits. Take, for example, a woman who gave us $600 worth of stock that she had originally purchased for $100.

“She was able to take a $600 charitable tax deduction for a gift that ultimately cost her $100 – that is smart giving,” said Brian Molohon, Development Director for The Salvation Army Northern Division.

You can even designate how The Salvation Army should use your donation. For example: A Twin Cities couple once donated stock toward the purchase of new tables and chairs for The Salvation Army in South Minneapolis.

Donating from your IRA 

If you are at least 70½ years old, you can donate tax-free from your traditional or Roth IRA.

Donations from your IRA can be made in any amount, from $100 up to $100,000. These gifts count toward your IRA Required Minimum Distribution amount for the year, yet they do not count as taxable income.

“This type of gift has great upside,” Molohon said. “The tax savings allow donors to stretch their dollars further. In turn, The Salvation Army is able to serve more people.”

The most important stipulation of donating from your IRA is that you must not withdraw your gift into another one of your personal accounts. Your gift must be transferred directly from the custodian of your IRA to The Salvation Army.

To learn more about changing lives by donating securities or IRA funds, please call 651-746-3504 in the Twin Cities or toll free at 800-456-4483 ext 3504 in North Dakota or Greater Minnesota. Additional information can be found on our Planned Giving webpage.

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