Gifts That Reduce Your Taxes

Gifts of appreciated securities are a smart way to maximize the effectiveness of your charitable giving and may make you eligible for a double tax benefit. If you have held stocks or mutual funds for more than a year, and they have increased in value, you may want to consider using these assets (rather than cash) to fund your giving. 

Subject to certain restrictions, transferring ownership of your long-term security to the University of Richmond School of Law allows you to avoid the capital gains tax you would pay if it were sold, and you may claim a charitable income tax deduction for the current fair market value of the asset. In addition, when we sell the stock, we keep every penny of the proceeds since we are a tax-exempt organization.

Note: Be sure to transfer the stock directly to us. Do not sell the stock, or you will lose this important tax advantage.

Learn How to Donate Securities Here

If you are 70½ or older, you can make tax-smart gifts to the University of Richmond School of Law through your IRA. By authorizing a Qualified Charitable Distribution (QCD), you can donate up to $105,000 (in 2024) to eligible charities like the law school. Although there is no tax deduction, the distribution is excluded from your income for federal tax purposes. A QCD from an IRA also counts toward a donor’s required minimum distribution if one is due. Calculate your required minimum distribution here. 

Contact your IRA administrator/custodian for instructions on how to authorize a Qualified Charitable Distribution to the University of Richmond School of Law.

Retirement account assets left to loved ones can be subject to higher taxation than other types of assets because they may face both estate taxes at the time of your passing and income taxes when your beneficiaries withdraw funds. However, when retirement assets are left to a charity, they typically qualify for both income- and estate-tax charitable deductions, allowing the charity to receive the assets tax-free.

By making the University of Richmond School of Law the beneficiary of your IRA, 401(k), or other qualified retirement account (and selecting alternative assets to leave to family members), you may be able to reduce taxes that otherwise would be imposed and leave more to your other beneficiaries.