Year End Giving to United Way

There are a number of ways to invest in your community through United Way of Greater Richmond & Petersburg. Learn more about these options and the tax benefits that come with each.

Give Appreciated Securities

Instead of giving cash, individuals can directly transfer appreciated securities to United Way through a broker. This would eliminate the capital gains tax that would otherwise need to be paid, and the current market value of the gift may be deducted as a charitable contribution (up to 30 percent of adjusted gross income).

Give From Your IRA

If you have a regular IRA, you could instruct the administrator of your IRA to transfer all or part of your distribution directly to United Way – a strategy known as the IRA charitable rollover. If you are over the age of 70 ½ and have a required annual minimum distribution, your gift would count towards this rather than being added to your taxable income.

Bundling

If your charitable gift is less than the standard deduction, consider timing your gifts strategically to maximize your benefit. For example, if you usually give in December, this year plan to make your gift on the first of January of 2020 and then make your next gift in December of 2020. By “bundling” your gifts into one tax year you may be able to itemize (if the total exceeds the standard deduction), thereby reducing your taxes. By alternating every other year (one year using the standard deduction and itemizing the next year) you are reducing your taxes over a two year period.

If your itemized deductions regularly exceed the standard income-tax deduction, you will benefit from continuing to itemize your gifts. However, if you are among the 90 percent of individuals who will not itemize because of the higher standard deduction implemented in 2017, there are several ways you may still realize tax savings from your gifts. We encourage you to consult your financial planner before finalizing any gift.

If you would like to further explore one of these options, please contact:

Samantha McCabe 
Manager of Leadership Giving
United Way of Greater Richmond & Petersburg
mccabes@yourunitedway.org