Year-End Giving
There are many tax-friendly incentives to donate to charities like TWP in 2022. Some sprang from the CARES Act, and others have existed for years.
We’ll review a few ways to give below:
Taxpayers who itemize their deductions in 2022 can deduct up to 50% of their Adjusted Gross Income (AGI) via cash donations made to qualifying charities in the U.S., including 501(c)(3) nonprofits like TWP.
Gifts of noncash assets, like stocks and mutual funds that have appreciated in value, can save you thousands of dollars in income taxes when transferred directly, because if they are not sold first, they don’t generate income. You can also deduct up to 30% of your AGI via the donation of these shares to a qualifying 501(c)(3) nonprofit.
Individuals over the age of 70½ can donate up to $100,000 through distributions from IRAs without having to recognize the distribution as income. This means if you’re subject to Required Minimum Distributions (RMD) from an IRA, you can meet your distribution requirements tax-free by making Qualified Charitable Distributions (QCD) to organizations like TWP - even if you don’t itemize.
TWP made it extremely easy to transfer shares of stock and mutual funds directly from brokerage accounts at Fidelity, Vanguard, or UBS to Trees, Water & People. This is a great way to pass on the full value of your gift, without having to pay income tax on the sale of shares first.
For Fidelity:
Account Name: Trees, Water & People, Inc
Account Number: Z20407864
For Vanguard:
Name: Trees, Water & People, Inc - Brokerage
Account Number: 82350069
Don’t use Vanguard or Fidelity? You can still make direct transfers of shares using UBS Wealth Management,
with TWP account number: RC 09649 and UBS DTC number: 0221
Donor-Advised Funds (DAFs) have until December 9 to make grant recommendations for 2022, so while there are no distribution requirements, please consider giving generously to your favorite local nonprofits that depend on your support to advance their important work.
Trees, Water & People also accepts cryptocurrency donations! What better way to offset the impact of crypto-mining than by planting a tree or building a clean cookstove for a family in need? Crypto donations, like stock donations, are a non-taxable event, and are eligible for deductions on your income. Learn more at: https://treeswaterpeople.org/donate-crypto
We hope this was helpful, and always recommend you discuss your financial decisions with a tax professional or financial advisor to optimize your giving and achieve your personal philanthropic goals.
Thank you for supporting Trees, Water & People and the work we do for future generations.
Updated: October, 2022.
