giving strategies

There are several charitable giving options that may best meet your own personal financial and philanthropic goals.  Some of these options are described in more detail below.  Your gift to the Catholic Community of Pleasanton will help preserve our parish and provide resources for continued growth, both physically and spiritually.

Donors contemplating any of the following strategies should consult with their financial, tax or legal advisor.
Qualified Charitable Distributions
A Qualified Charitable Distribution (QCD) is a direct transfer of funds from your IRA custodian, payable to a qualified charity. With a Qualified Charitable Distribution (QCD), you may be able to satisfy your traditional IRA’s Required Minimum Distribution (RMD) and lower your taxable income. The IRA assets go directly to charity, so donors don’t report the QCD as taxable income. With a QCD, you can lower your taxable income by as much as $100,000 per year. In addition, the QCD allows a donor to receive a tax benefit from a charitable contribution, even if the donor does not itemize the deduction, as the amount of QCD is excluded from taxable income. QCD rules:
​
  • Individuals must be at least age 70.5* on the date of the gift.
  • QCDs can come only from a traditional IRA (not from a Roth IRA, 401(k) or other retirement accounts).
  • A maximum of $100,000 may be given annually.
  • The transfer must come directly from the IRA custodian.
  • QCDs can be made only to public charities, such as the Catholic Community of Pleasanton. They cannot be made to private foundations or donor advised funds.
  • Distributions can be used to satisfy a person’s pledge, such as the CCOP Arise and Build Capital Campaign.

* Even though the SECURE Act raised the required minimum distribution (RMD) age to 72, the QCD age remains at 70.5, so QCDs can be used for charitable giving even before RMDs begin.
Gifts of Appreciated Assets (stock or mutual funds)
Making gifts of appreciated assets, such as stock or mutual funds, allows you to avoid the capital gains tax that would be due if the assets were sold, offering tax savings even if you use the standard deduction. If you do itemize you get the double benefit of not having to pay capital gains tax on the gain and you are able to deduct the charitable contribution (within 30% of gross income limits). If you do not itemize and use the standard deduction, the tax savings is the capital gains tax you would have paid if you sold the securities. To learn more, please visit: https://files.ecatholic.com/22403/documents/2022/7/Procedures%20for%20Giving%20Stocks%20and%20Securities%20%20Stock%20Form%20Rev%2007.08.22.pdf?t=1658349275000​
Donor Advised Funds (DAF)
Those with donor advised funds can direct gifts to public charities. When a gift is made to a donor advised fund, the charitable donation is created at that time, not when the funds flow out of the DAF to the qualified charitable organization. You may be able to itemize by making a larger gift to a donor advised fund, from which annual gifts can be made over several years. Contributing appreciated securities to a donor advised fund provides added tax savings. This is a useful strategy in a year when there is a large income event. You could contribute three times your usual annual gift and get the large deduction in one year while distributing the gift over three years out of the donor advised fund.
Charitable Remainder Trusts and Charitable Gift Annuities
Life-income gifts such as charitable remainder trusts and charitable gift annuities offer several advantages to satisfy philanthropic goals. Because deductions for remainder trusts and gift annuities tend to be larger, you may be able to itemize in the year a gift is arranged. Payments from life-income gifts may be attractive to those who would normally make bequests to charity through a will or living trust—providing income tax and possibly capital gains tax savings. Funding life-income gifts for loved ones in your estate plans may provide them with regular payments for life or a term of up to 20 years.