End of Year Donations for Tax Savings

The year 2025 will soon be coming to a close.  At this time of year, many are looking for tax savings through donations.  The Veterans Memorial Health Care Foundation accepts many types of gifts that offer the donor considerable tax savings.  This is the first of a three-part series explaining some additional ways of giving that also offer additional taxation benefits. 

While cash gifts are the most common and always appreciated by the Veterans Memorial Health Care Foundation, there are three different types of donations that may offer added tax benefits.  These options include: Qualified Charitable Distributions (QCD), also known as IRA Charitable rollovers; Donor Advised Funds (DAF); and gifts of stock, mutual funds, or other securities.  This article will outline the QCD option with the other two options following in the next two consecutive weeks.

          Donation gifts from an IRA can do double duty and are a great option to choose when wanting to support good causes while reducing taxes?  Anyone 70½ or older can transfer up to $108,000 directly from their IRA to a charity like the Veterans Memorial Health Care Foundation without paying income tax.  This gift is called a qualified charitable distribution (QCD) or an IRA charitable rollover, and it counts toward the donor’s Required Minimum Distribution.  One important point to remember is that the donor cannot claim the transfer as a charitable deduction on their tax return, though this only matters if they itemize their deductions.

Beth Shafer, Growth and Development Coordinator at Veterans Memorial Hospital states, “I had a Foundation donor who recently told me, ‘Making a gift through my IRA not only supports the hospital, it also lowered my taxable income this year.  It was a win-win.’  So we wanted to share the news that this is a great option when looking for way to reduce your taxes.”

          “Gifts from an IRA to a loved one after your passing are usually fully taxable,” adds Shafer.  “By contrast, designating a charity as the beneficiary ensures your full gift makes an impact while avoiding taxes. Simple planning—like requesting a direct transfer or naming the Foundation as a beneficiary—can maximize your giving and leave a lasting legacy.”

For questions about donating to the Veterans Memorial Health Care Foundation, contact Beth Shafer, Growth and Development Coordinator, at 563-568-3411. The Foundation is a 501(c)(3) non-profit organization.  All donations support the health and wellness of the hospital and the surrounding communities.