It’s that time of year again! Tax season is upon us and the deadline to file your 2021 taxes is April 18, 2022.
Last year, we partnered with FreeWill to help make sense of “smart” or “tax-advantaged” giving, or the ways our friends and neighbors can plan for their family’s financial future, help people in our communities facing hunger, and receive tax benefits all at the same time, FreeWill’s tools are simple to use, quick to fill out, and—most importantly—free! Greater Pittsburgh Community Food Bank supporters who chose to make tax-smart gifts last year may be seeing the tangible benefits as they file this spring.
Here’s two ways to make a difference for local neighbors while also setting yourself up for future tax savings with the help of FreeWill.
1. Giving stock or mutual funds to the Food Bank can make a huge difference on next year’s tax return. When you transfer your appreciated assets, you:
- Skip paying the capital gains tax, or the tax on the profit from selling an investment, on the donated shares
- Can take a charitable deduction for the ENTIRE donation amount, if you itemize
- May be able to give more than you think possible, thanks to your tax savings, and therefore;
- Make a real-time impact for area families this year
Our online tool makes transferring stocks simple by allowing you to complete the necessary forms online or giving you access to our account information so you can make the transfer with your broker.
Most importantly, every dollar you donate pays for up to five nutritious meals for local families. A tax-savvy gift of stock helps turn hunger into hope by providing potentially hundreds of meals at a low cost to you.
2. Donors 70½ and older who have traditional IRAs can choose to give a gift directly from their retirement account as a Qualified Charitable Distribution.
IRA gifts can make an even greater impact on the Food Bank as we work toward our goals this year. In many cases, this kind of gift is 100% tax-free and can have a positive impact on your 2022 taxes, by allowing you to increase your neighbors’ access to nutritious food without increasing your taxable income.
And, if you are subject to a Required Minimum Distribution (RMD), they can also help you meet your requirement early in the year!
Our IRA tool can help you fill out the necessary forms online, or, print and complete your forms offline, whichever you prefer.
Tax-advantaged gifts of any amount can be impactful. Donations of stock or IRA assets help you at tax time and allow you to preserve your cash on-hand. Best of all, your gift helps Greater Pittsburgh Community Food Bank ensure our region has the resources to feed neighbors in need and address the root causes of food insecurity so that we can all have a brighter, healthier future.
Check out our Smart Giving page to learn more about tax-advantaged giving.