It’s the holiday season of gift-giving, family, friends, and celebrations! It also marks the last few weeks in the year to make a tax-deductible donation to San Gabriel Valley Habitat for Humanity (SGV Habitat).
Donating to SGV Habitat is an excellent tax-saving opportunity available when you itemize on your tax form. Not only does it help families in San Gabriel Valley find a better quality of life through our affordable homeownership and home preservation programs, taxpayers also enjoy tax savings by deducting part or all of their contributions on their tax returns. It is a winning solution for you and the thousands of people in our community dreaming of owning a home of their own. Your donation will change lives!
There are many avenues to give and receive a tax deduction.
WAYS TO GIVE
Cash, check, and credit card donations allow for a generous deduction on your income tax statements. This year individuals can donate up to 50% of their adjusted gross income(AGI) for cash contributions (some limitations exist). Any cash contributions under $250 do not require a receipt from the organization. The federal law requires that if the amount is over $250 written communication confirming the donation is required. We are grateful for every donation and send out tax letters to donors after the first of the year!
When you donate your stock to a nonprofit, the donation value is greater because the gift is tax-deductible. If you were to sell the stock first, you will probably pay the capital gains tax. By donating the stock directly to SGV Habitat you are saving the penalty of capital gains tax and are still eligible to deduct the full fair-market value of the asset you donated from your income tax, (up to the overall amount allowed by the IRS). Please advise a tax accountant as this rule can vary.
DONOR-ADVIDSED FUND (DAF)
A DAF is like a charitable investment account with the direct purpose of supporting organizations you are passionate about. When you contribute either cash, securities, or other assets to a DAF you are eligible to take an immediate tax deduction. You can take the tax deduction in the current year even if the funds are not distributed until later. Those funds can be invested for tax-free growth, and you can recommend grants to any IRS-qualified public charity—like SGV Habitat. DAFs are one of the easiest and most tax-advantageous ways to give to charities. You can set up a DAF with several larger investment organizations. (There are fees associated with holding a DAF.)
HONOR OR MEMORIAL GIFT
This holiday, or any time of year, you can gift a donation in someone’s name to honor their birthday, anniversary, accomplishment, birth or milestone. You can also send a memorial gift of a loved one.
When you donate your vehicle, proceeds go right back to helping families in the San Gabriel Valley build or repair their homes. In addition, your donation will qualify for a tax deduction. Vehicle donations are not limited to just cars. Habitat for Humanity accepts trucks, RVs, motorcycles, boats and construction equipment. Running or not, every vehicle donation makes an impact and helps families gain independence. If you have an unusual vehicle you are interested in donating, call 1-877-277-4344 or email at email@example.com. It’s fast and easy through our donation website
The information provided is a brief description of investment opportunities that may allow you to reduce your taxable income while injecting support to the growing crisis of affordable housing in San Gabriel Valley.
Please consult your tax professional to assess if a charitable donation can help you and your community this tax season.