Three Tax-efficient Ways to Give

November 26, 2018 by Lawrence C. Norford, Esq.

Gifts that Also Benefit You

Last year’s new tax law (the Tax Cuts and Jobs Act) has raised many questions, including its impact on charitable planning and giving. Larry Norford of the Johns Hopkins Office of Gift Planning describes three ways to maximize your tax savings while supporting Johns Hopkins.

A portrait of Larry Norford who is the senior director and senior philanthropic advisor in the Johns Hopkins of Gift Planning.
Larry Norford is the senior director and senior philanthropic advisor in the Johns Hopkins Office of Gift Planning.
1. Give appreciated securities.

When you give appreciated shares of stock or mutual funds that you’ve held for at least one year, you benefit Johns Hopkins and avoid capital gains tax. If you itemize your deductions, the benefits of giving appreciated securities are even greater, as you also receive a charitable deduction for the fair market value of the securities.

2. Make a gift from your IRA.

Individuals who are age 70½ or older may give up to $100,000 annually from a traditional IRA directly to a charity, such as Johns Hopkins. These funds are excluded from taxable income and count toward your required minimum distribution. By avoiding tax on unneeded distributions from your IRA, you receive an income tax benefit, even if you don’t itemize your deductions.

3. Establish a charitable gift annuity.

A charitable gift annuity (CGA)* supports the future of Johns Hopkins and provides fixed, guaranteed income to you or a loved one. A CGA also offers tax benefits to you, including partially tax-free income and favorable treatment of capital gains when you make your gift with appreciated securities. You are also eligible for a charitable income tax deduction. What’s more, payout rates for new Johns Hopkins charitable gift annuities increased on July 1, 2018, so it’s a good time to establish a CGA and receive even more income.

For information on these and other mutually beneficial ways to give, call 410-516-7954/800-548-1268, email giftplanning@jhu.edu, or visit giving.jhu.edu/giftplanning.

*Seek advice from a tax professional before entering into a gift annuity agreement. Johns Hopkins gift annuities are not available in all states.

Topics: Alumni, Faculty and Staff, Friends of Johns Hopkins Medicine, Parents