Tax-Smart Ways to Give

A 1040 form, a W-2. amd a certificate that has the Statue of Liberty and says United States on it.

Donor Advised Fund

A Donor Advised Fund (DAF) is a charitable giving vehicle that allows you to make a charitable contribution, receive an immediate tax deduction, and then recommend grants from the fund over time.

By contributing to a DAF, you can support Lumina Alliance and take advantage of the tax deduction in the year of the donation. This can be particularly beneficial if you have a higher income in a specific tax year and want to offset it with charitable contributions.

DAFs can easily be set up through a community foundation or a financial institution. You can make a one-time gift, establish a recurring gift, or designate Lumina Alliance as a beneficiary. 

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IRA Distribution

If you have an Individual Retirement Account (IRA) and are at least 70½ years old, you can make a Qualified Charitable Distribution (QCD) directly from your IRA to Lumina Alliance.

While there is no charitable donation for a rollover gift, the distribution can count toward your required minimum distribution (RMD) and is excluded from your taxable income. It’s a tax-efficient way to support a cause you care about while fulfilling your retirement account obligations.

Gifts of Stock

Donating appreciated stocks or other securities is another tax-smart way to support Lumina Alliance. If you have stocks that have grown in value, donating them directly to a charity can provide you with a double tax benefit.

Firstly, you can avoid capital gains tax on the appreciated value of the stock. Additionally, you may be eligible for a charitable deduction based on the current market value of the donated securities.

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You also may choose to donate stocks or securities to Lumina Alliance. Consult your lawyer, accountant, or financial adviser for specific advice or assistance. If you do include us in your estate plan, please inform us so that we can ensure your wishes are carried out in exactly the manner you have intended.