By CASA Board Vice-Chair Kim Miller, WMCP®, Vice-President, Financial Advisor, Baird
Did you know there are ways to support the CASA Board Volunteer Association, that can make your generosity go even further—without costing you extra? Two smart strategies many donors love are donating appreciated stocks and making Qualified Charitable Distributions (QCDs) from your IRA.
Donating Appreciated Stocks
If you own stocks that have grown significantly in value, donating them directly to a nonprofit can be a win-win. Here’s why:
- Avoid Capital Gains Tax: When you donate appreciated securities instead of selling them, you bypass the capital gains tax you’d owe on the sale.
- Receive a Charitable Deduction: You can typically deduct the fair market value of the stock (if you itemize), up to IRS limits. If you typically do not itemize, consider a “bunching” strategy where you give a larger sum in one year rather than spreading it out over many years to allow you to itemize.
- Greater Impact: Since you’re not paying taxes on the gain, the charity receives the full value of the stock, increasing your gift’s impact.
Example: If you bought shares for $5,000 and they’re now worth $15,000, donating them directly means the nonprofit gets $15,000, and you avoid paying tax on the $10,000 gain.
*See below for instructions on how to donate stock to CASA
Qualified Charitable Distributions (QCDs) from IRAs
For donors age 70½ or older, QCDs are an excellent way to give:
- Tax-Free Giving: You can transfer up to $100,000 per year directly from your IRA to a qualified charity without counting it as taxable income.
- Satisfy RMDs: QCDs count toward your Required Minimum Distribution (RMD), reducing your taxable income.
- Inherited IRAs: If you’ve inherited an IRA, you may also be able to use QCDs to fulfill annual distribution requirements while supporting causes you care about. This strategy is especially helpful for those who don’t itemize deductions, as the tax benefit comes from excluding the distribution from income rather than claiming a deduction.
Why These Strategies Matter
Both appreciated stock donations and QCDs allow you to support your favorite nonprofit in a tax-efficient way. By leveraging these tools, you can make a bigger impact without increasing your out-of-pocket cost. Your generosity can go further when paired with smart planning! Your generosity can go further when paired with smart planning!
Stock Donor Information
CASA Board Volunteers Association, Inc. maintains a brokerage account at Robert W.
Baird & Co.
Securities may be transferred to this account electronically. Please provide the following information to your broker to initiate an electronic transfer:
DTC #0547 CASA Board Volunteers Association, Account #2320-6569
Robert W. Baird & Co
Pamela Kiltau, Vice President
3875 Embassy Parkway, Suite 300 Akron OH 44333
Please contact Baird (toll free 877-792-7868) for any questions regarding the above instructions. CASA Board Volunteers Association’s federal tax identification number is 34-1856268 If you encounter problems or need additional information, please contact us at any time (330) 664-5500.
The information offered is provided to you for informational purposes only. Robert W. Baird & Co. Incorporated is not a legal or tax services provider and you are strongly encouraged to seek the advice of the appropriate professional advisors before taking any action. 8636349.1
CASA Board Volunteer Association, Inc. is recognized as a tax-exempt public charity under Section 501(c)(3) of the Internal Revenue Code. Contributions are deductible to the extent allowed by law.
