JANUARY 2022

THE BIG THREE: CURRENT GIFTS TO SCOUTING

 

For most donors who want to invest in the Nevada Area Council, there are still three great strategies for maximizing gifts and minimizing the effect on cash flow.  Of course, you should visit with your own advisors to discuss your best strategies, gift timing, etc., and some of these could change with any tax reforms passed later this year.    But you may want to consider:

  1. Gifts of appreciated stocks.   Transfers of stocks and other securities from your account directly to the Nevada Area Council can maximize a gift with “pre-tax” dollars.  If you have owned these stocks for more than 12 months, you can: a) avoid the capital gains tax, and b) get a charitable tax deduction for the fair market value of the stocks or property.  Even if you don’t itemize your tax deductions, these are still pre-tax gifts of assets, not after-tax gifts from cash flow or savings.    

While stocks and securities are still the most common types of non-cash gifts, you may also consider gifts of other appreciated assets, such as real estate.      

  1. Direct transfers from IRAs.  If you are age 70½ and older, you may make charitable transfers in any amount, up to $100,000 a year from your traditional IRAs. As long as the transfer goes directly to the council, you will not be taxed on the withdrawal. These are called qualified charitable distributions (QCDs).  Also, if you are age 72 and older, and now have to take annual Required Minimum Distributions, QCD’s will count towards those required distributions.  These may be particularly effective gifts if you do not itemize or do not currently need extra income from your IRAs.  Talk to your advisor and your IRA plan administrator to confirm the amounts and timing of these distributions.

 

  1. Donor Advised Funds – we have seen a huge increase in gifts from donor-advised funds held by Schwab, Vanguard, Fidelity, community foundations, and many others. Assets in a donor-advised fund are already given away, so your requested distribution to the council is not a “new” or out-of-pocket gift. Just contact your fund administrator and request a specific amount to distribute to our council.  Many donor-advised funds allow you to do this online or simply by email request. 

As always, discuss major charitable gifts and tax decisions with your own advisors. But the big question for most donors is, “Will my gifts make an impact?”. Also, we find that most gifts are driven by a desire to invest in Scouting’s mission and to create Scouting legacies.  Thank you for your support of Scouting in the Nevada Area Council, and please contact us with any questions.

Nevada Area Council, Boy Scouts of America. Please contact Paul Penttila, 775-787-1111 ext. 226.