The beginning of the year is a great time to adopt a tax-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 reduce your tax burden while bringing hope to children in need of lifesaving care.
1. 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.
2. Donate appreciated assets
If you're looking for a way to access the equity in an appreciated asset, there are many ways Phoenix Children's can work with you. 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, collectibles or other items of value, consider exploring strategies to take one asset and create multiple outcomes.
3. Donate appreciated stock
When you donate appreciated stock you’ve held for a year or more, you'll qualify for an immediate income tax deduction based on the current value of the stock rather than the price you paid for it. By donating the asset directly to Phoenix Children's, you can avoid paying capital gains that you would otherwise owe if you sold the appreciated stock. Donating the appreciated stock instead of the after-tax proceeds also allows you to maximize the amount of the gift. This can be especially beneficial if you are holding a highly appreciated asset or wish to diversify your portfolio.
4. 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 a charitable legacy.
5. Make a QCD from an IRA
IRA account owners age 70½ and older can transfer up to $100,000 per year to charity with a qualified charitable distribution (QCD). The transferred amount doesn’t count as income and counts toward your required minimum distribution (RMD). 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.
6. 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. Large estates may deduct their gift, saving estate taxes while creating a lasting legacy for children.
7. Donate from a DAF
If you've previously funded a donor-advised fund (DAF), you can offer a grant to Phoenix Children's without it affecting your income.
*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 tax-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.
If you have a story about how your life has been touched by Phoenix Children’s, we want to hear from you.
