Your support of the Association of Nature Center Administrators (ANCA) strengthens leadership in the nature and environmental learning center field, helping organizations thrive and deepen their impact. Considering potential tax benefits when giving can create advantages for both you and ANCA.
Here are some tax-wise ways to make your giving go further.
Charitable Deductions
State Tax Benefits
If you take the standard deduction on your federal taxes, you may still qualify for tax benefits at the state level. We encourage you to investigate tax benefits for your state.
Donation Bunching
Donation bunching is a tax strategy of combining multiple years of donations into a single year to exceed the itemization threshold. A donor-advised fund can be a tool for this approach, allowing you to make a lump-sum charitable contribution for an immediate tax deduction while distributing gifts to ANCA and other organizations over time.
Learn about giving to ANCA via a donor-advised fund.
Giving from Investment Accounts
IRA Qualified Charitable Distributions
If you’re 70 1⁄2 or older, making a Qualified Charitable Distribution (QCD) from your IRA can be one of the most tax-efficient ways to give. IRA distributions are normally taxable, but QCDs are tax-free. As such, QCDs are a popular way to give to charity while also satisfying the required minimum distribution from an IRA.
Additionally, because QCDs reduce the balance of the IRA, they can reduce required minimum distributions in future years.
Appreciated Assets
Gifting appreciated assets—such as stocks, bonds, mutual funds, or real estate—is another tax-wise option. Donating these assets directly to ANCA (or through a DAF) allows you to avoid capital gains taxes while taking a deduction for the full fair-market value, up to 30% of your adjusted gross income. Unused deductions can be carried forward for up to five years.
Planned and Estate Gifts
While most estates are not subject to estate taxes, income tax considerations still play a significant role in estate planning. Tools like charitable gift annuities and charitable remainder trusts can provide an immediate tax deduction, generate income for you or your heirs, and establish a lasting legacy for ANCA.
Strategically allocating assets in your estate can also reduce tax burdens for your heirs. Tax-deferred retirement accounts, for example, are subject to income tax when inherited by individuals, but if left to charity, they pass tax-free. A tax-wise estate plan might designate an IRA for charitable giving while leaving appreciated securities to family members.
Learn about planned giving to ANCA.
Further Information
These are just a few ways tax-smart giving can maximize your impact. We encourage you to consult with your financial or legal advisors to explore the best options for your situation.
If you have questions for ANCA about any giving options, please contact us.
