Phoenix Children’s brings hope to children like Nolan every day, but it’s never more important than during the holiday season. Every day, we see children’s lives made better as we continue to search for revolutionary cures and offer life-changing treatments, and special programs like therapeutic arts and animal-assisted therapy bring joy to patients and their families. Many of these services that help children heal are made possible by the generosity of donors like you.
The end of the year is a great time to adopt a savvy giving strategy that allows you to support Phoenix Children’s while increasing the amount of cash in your pocket. There are several ways you can potentially reduce your tax burden while bringing hope to children in need of lifesaving care.
1. Donate stock.
Though the market has had some ups and downs, you may still have long-term appreciated stock. By donating stocks directly to Phoenix Children's, you can bring hope to children and families while receiving an income tax deduction for the fair market value and avoiding capital gains tax at transfer.
2. Make a qualified charitable distribution (QCD) from an IRA.
IRA account owners age 70 1/2 and older can transfer up to $100,000 per year to charity with a qualified charitable distribution (QCD). If applicable, this can satisfy your required minimum distribution (RMD) and exclude the amount donated from taxable income. You don’t pay any income tax on the transfer and don’t need to itemize deductions to take advantage of a QCD. If you are required to take RMDs but don’t need or want the funds, this may be a good strategy for you. Your contribution can make a significant difference in the lives of children and their families. Simply contact your IRA custodian and direct them to make a transfer from your IRA directly to Phoenix Children’s
3. Donate from a DAF.
If you've previously funded a donor-advised fund (DAF), you can direct a grant to Phoenix Children's without it affecting your income. This is a wonderful opportunity to turn your previous contributions into a heartfelt gift that brings joy and hope to the lives of those who need it most.
4. Give from your charitable gift annuity (CGA).
Are you searching for a reliable way to safeguard your financial stability amidst the unpredictable stock and real estate markets? A charitable gift annuity (CGA) is a unique opportunity to support Phoenix Children's while ensuring your own financial security. By making a CGA, you can receive fixed payments for life, providing you with a stable and dependable source of income. These fixed annuity payments remain unaffected by economic fluctuations, giving you peace of mind in uncertain times. If you itemize your deductions on your income tax return, a CGA may qualify for a deduction, potentially reducing your tax liability. It's a win-win situation—you secure your financial future while contributing to the well-being of children and families at Phoenix Children's.
5. Make a bequest in your will or trust.
Consider naming Phoenix Children's as a beneficiary under your will or trust. Blending your current giving with future gifts can allow for your greatest impact. Creating your free will now gives you the power to shape the futures of Arizona children and extend your charitable giving beyond your lifetime. Your legacy becomes a testament to your compassion and the positive change you wish to see in the world.
By leaving a gift to Phoenix Children’s in your will, you ensure that your values and philanthropic spirit will continue to thrive for generations to come. You can choose to support specific programs, establish an endowed fund, or provide unrestricted funds to give Phoenix Children’s the flexibility to address emerging needs. This level of personalization allows your philanthropy to remain true to your vision and create the greatest possible impact.
If you have already included Phoenix Children’s in your will, we extend our heartfelt gratitude for your commitment to children’s health. Please let us know of your decision so that we may express our appreciation and keep you informed about the impact of your legacy.
6. Take advantage of a zero-tax gift and sale.
If you're looking for a way to access the equity in an appreciated asset, there are many ways we can work with you. Donating appreciated real estate, such as a home, vacation property, undeveloped land, or commercial property, can transform lives at Phoenix Children’s. Rather than losing capital to taxes, you can invest in children's health while benefiting from advantageous tax savings and even creating a lifetime income. Before you sell your business, land, or other items of value, consider exploring strategies to take one asset and create multiple outcomes.
7. Make a gift from a qualified retirement plan.
If you have a retirement plan such as an IRA or a 401(k), the individual beneficiaries of the plan will pay income tax when they eventually receive it. Instead, consider naming Phoenix Children’s as the beneficiary of some or all of it. Because charities don’t pay income tax, the full amount of the retirement account will directly benefit Phoenix Children's. You can also create a charitable gift annuity from your testamentary IRA distribution. This will allow you to stretch your gift to your heirs longer than the law allows you to give directly to them. This strategy will reduce their tax burden while creating your charitable legacy.
8. Make a gift of life insurance.
As the year draws to a close, it's an ideal time to assess your essential documents, including life insurance policies. Particularly, paid-up whole life policies often hold considerable value that can be transformed into a charitable gift, potentially offering you tax deductions. Consider the impact you can make by choosing to gift your life insurance policy to Phoenix Children's. If you have a policy that has fulfilled its original purpose, such as providing for minor children who have now become financially independent adults, redirecting its value to support our mission is a beneficial way to leave a lasting legacy.
9. Donate a vehicle.
Do you have an old car, truck, boat, motorcycle, or motor home taking up space and becoming a burden? Consider giving it new purpose by donating the vehicle to Phoenix Children's. This generous gift will not only rid you of the vehicle but also provide vital support to our patients and their families. When you donate your unwanted vehicle, you can even claim the fair market value of your donation, up to the amount realized at sale, as a tax deduction, potentially reducing your tax liability.
10. Give and get back with the Arizona Charitable Tax Credit.
With this dollar-for-dollar credit—up to $421 for those filing individually and $841 for those filing jointly—you can get the value of your gift back on your state income taxes. Any charitable donation made by April 15, 2024, can still be used toward your 2023 Arizona Charitable Tax Credit.
To qualify for a 2023 federal tax deduction, mailed gifts must be postmarked by December 31 (even if cashed in the following year). Credit card gifts must appear on your credit card statement on or prior to December 31. Gifts of securities, QCDs and assets are more complex and may require two to four weeks to complete—be sure to start the process early.
*This information is not intended as tax, legal or financial advice. Gift results may vary. Consult your personal financial advisor for information specific to your situation.
Learn more about these and other savvy giving strategies.
More Ways to Give
Whether you lace up your sneakers for the PCH5K, hold a fundraiser for your birthday or start a corporate giving program at your company, there are many ways to support Phoenix Children’s.
For more information about planning a gift that will bring moments of hope to Phoenix Children’s patients and their families, visit GiveToPCH.org/giftplanning or contact our Gift Planning team at giftplanning@phoenixchildrens.com.
If you have a story about how your life has been touched by Phoenix Children’s, we want to hear from you.
