What to Give
Cash and Checks
Cash contributions may be made by check, by credit card online through our website, and by ACH transfer to our bank account.
Stocks, Bonds, Securities
Recent years have seen enormous gains in the stock market, generating increased wealth for shareholders. With the growing value of investments comes the responsibility of managing and maximizing the use of those resources, including recognition of potential and pending tax obligations.
Publicly traded securities that gain market value is generally not taxed until it is sold. If the securities have been held over one year it can be subject to long-term capital gains taxes, potentially creating a tax burden for the donor.
Donors wishing to make substantial charitable gifts often contribute securities, rather than cash. By doing so, the donor permanently avoids paying taxes on the security’s capital gains, and the charitable organization does not pay taxes on the gift of securities because they are tax exempt.
Given the substantial increase in investment values over the last few years and the corresponding amount of accumulated, taxable capital gains, you may wish to take advantage of donating securities now, while the market value is still high. The gift of securities will be sold, and you will have the option of setting up a donor-advised fund or endowment fund, or giving to one of SDSCF’s current program initiatives.
Closely Held Stock
If you have “closely held” stock that is not publicly traded and wish to set up a donor-advised fund or an endowment, an option to consider is donating such stock to the San Diego Seniors Community Foundation. In consultation with your professional tax advisor, you may be eligible for a substantial tax deduction with no cash out-of-pocket. SDSCF will hold the stock until it is either converted to publicly traded stock, or until a “liquidation event” such as the sale of the company.
Real Estate
Real estate is typically the most highly appreciated asset owned by an individual or a family. When that real estate is sold, substantial long-term capital gains may result with a corresponding tax liability.
Donors wanting to make a substantial gift to charity may find real estate to be an appealing alternative to limited cash resources. Real estate gifts offer the opportunity to leverage a valuable asset to benefit a donor’s favorite charity and to leave an enduring legacy gift. A donation of marketable real estate that has been held for more than one year and is relatively easy to liquidate has potential to provide substantial benefits to both the donor and the recipient nonprofit organization.
Donating real estate is an ideal way to set up a sizable permanent endowment fund or donor-advised fund at SDSCF, providing a long-term benefit to our aging population of senior citizens.
Gifts of appreciated non-cash assets can involve complicated tax analysis and advanced planning, so we recommend that you consult with your tax or legal advisor.
Donations from IRA Retirement Accounts
For some adults, reaching a level of financial security means that retirement savings are no longer needed to maintain a good lifestyle. In some cases, distributions from a retirement account may even push you into a higher tax bracket.
If you are fortunate to have sufficient resources for your retirement years, you may wish to consider donating some of your unneeded retirement funds to charity. As of 2021, the Protecting Americans from Tax Hikes (PATH) act makes it possible to give individual retirement account (IRA) assets to a public charity via a Charitable IRA Rollover (also known as a Qualified Charitable Distribution). Such gifts use pre-tax dollars, can be applied towards the current year’s minimum distribution requirement, and are excluded from your taxable income.
The San Diego Seniors Community Foundation can receive IRA distributions of up to $100,000 directly from your IRA account to fund our program initiatives for seniors or to establish a permanent endowment fund. (Note that distributions to donor-advised funds do not qualify.)The legal rules for charitable distributions from retirement assets continue to change, so before making a donation from your retirement funds, we recommend that you consult with your tax or legal advisor.
If you have an interest in making a donation from your Roth or Traditional IRA retirement plan, we would be happy to talk with you and your professional advisor.
Paid-Up Life Insurance Policies
Donating a fully paid-up life insurance policy is an option seldom considered by donors. It may be that you have reached a level in your personal financial security where you no longer need the life insurance proceeds to benefit your estate.
Donating a paid-up life insurance policy provides an easy way for you to give a significant gift to charity now, with tax benefits that you can enjoy during your lifetime.
To donate a life insurance policy, the owner makes the San Diego Seniors Community Foundation the owner and irrevocable beneficiary of the life insurance policy. The gift is eligible for a tax deduction, depending on your personal tax situation. Then, when you pass away and the insurance proceeds are received, SDSCF sets up an endowment fund in your name, and grants from the fund are used for the charitable purpose you designated during your lifetime. Seniors continue to benefit long after you are gone – a true legacy fund.
Gifts of life insurance policies can involve complicated tax analysis and advanced planning for your estate’s needs, so we recommend that you consult with your tax or legal advisor.
If you have an interest in donating a paid-up life insurance policy, we would be happy to talk with you and your professional advisor.
Personal Property
Various types of personal property may be made as donations. The nature and value of the items as well as the capacity to sell them will determine if the gift makes sense for both the donor and SDSCF.
