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Unlike other charity structures, a donor-advised fund (DAF) gives you the choice to make a contribution in cash or other assets. While DAFs offer a simple path to donate to your favorite charity, the asset type you choose will affect the tax benefits you receive and the overall impact of your donation.

What's Considered A Non-Cash Contribution?

A non-cash contribution refers to any type of asset that isn't cash. Non-cash assets are common, making up 64% of contributions in 2024 alone. After you donate, the organization that manages your DAF will sell these assets, with all the proceeds going directly to your chosen charity.

Some examples of non-cash contributions include:

• Real estate
• Publicly-owned securities
• Restricted stocks
• Cryptocurrency
• Life insurance
• Fine art
• Collectible items

Advantages Of Donating Non-Cash Assets To A DAF

There are many benefits donors could have by choosing non-cash charitable contributions for their DAF:

Avoid Capital Gains Taxes

Any assets you put into your account won't be subject to capital gains taxes. This lets you donate the full market value without worrying about additional fees. In fact, some donors end up contributing even more than they initially planned due to their assets appreciating over time.

Easier Time Liquidating Assets

The best part of opening a donor-advised fund is how hands-off the process is for donors.

For example, say you contribute $15,000 in stocks. In this case, the organization that manages the DAF will handle the transfer and sale of your stocks and use that money for the charities you choose. This streamlined approach gives you more time to plan your giving strategy without dealing with the paperwork that comes with selling assets.

More Flexibility, Greater Impact

Once you establish a DAF, it lasts for life. Additionally, unlike private charities, you're not legally required to donate yearly. This means you could hold your assets in this account for longer before deciding where you want to direct your funds. With more flexibility and tax-free growth, your contributions can grow substantially over time, allowing you to give more to the causes you care about.

Starting A Donor-Advised Fund?

Non-cash DAF contributions have distinct advantages that could help you make a lasting impact with your donations. If you're thinking of starting a donor-advised fund and supporting your community, LI cares here to help you every step of the way. Contact us at 631-582-FOOD (3663) to learn more.

Charitable Gift Annuities (CGAs) have been around for a long time. This gift vehicle is a simple way for philanthropists to donate to a cause they care about. And in recent years, we've only seen them become more popular than ever . Read on to discover why CGAs are having a moment and why you should make them part of your charitable giving strategy.

Why Charitable Gift Annuities Are a Popular Investment Option

Payout Rates Are At All-Time Highs

Each year, the American Council on Gift Annuities sets a payout rate based on economic and market conditions. Since there's been record-high inflation the last couple of years, annual payout rates have increased to an average of 5.75% per year. Right now is the perfect time to invest and maximize your yearly annuity.

Fixed Annual Payments for Life

Something that draws many potential philanthropists is the idea of having a fixed income stream for life. For example, if you decide to invest $500,000 at age 70, you'd be eligible for an annuity rate of 6.4%, roughly $31,500. This extra guaranteed passive income would help you better manage your expenses, especially after retirement.

You'll Save on Taxes

Aside from stability, CGAs offer key tax advantages over other plans. The IRS allows you to claim a charitable gift as a tax deduction. The deduction is equal to your contribution's amount, minus the value of the total annuities you'll receive for the remainder of your life.

Let's say you donated $50,000 at 65. With the current payout rate of 5.7% based on your age, you'd receive $2,850 each year. Using the IRS's 5.4% discount rate, the current value of these annuity payments over 20 years amounts to $35,059. This comes out to a charitable deduction of $14,941 in taxes.

A tax deduction like this significantly reduces your taxable income the year you donate, saving you thousands.

You Can Leave a Valuable Legacy

Beyond the financial benefits, CGAs give you an easy path to support causes you care about. Any remaining funds will go directly to a charitable organization that will make a difference in your community once you pass away. It's a simple yet effective way to leave your mark in the world for years to come.

Don't Miss Out on This Opportunity

A charitable IRA rollover is a golden opportunity to save on taxes while donating to a cause you care about. Not to mention, you can save thousands of dollars on your taxes every year. To learn more about this strategy, keep reading on to find out how IRA charitable donations work and why they're worth looking into.

What Is A Charitable IRA Rollover?

Also known as Qualified Charitable Distribution (QCD), a charitable IRA rollover is a charitable gift you give to a qualified organization or institution.

To qualify for this provision, you need to:

• Be 70½ or older on the day you made the gift
• Make the gift to a certified charity or organization
• Transfer it directly from your IRA

One of the biggest reasons why retirees do this is the countless benefits they can receive. From tax savings to meeting yearly distribution requirements, a yearly QCD can be a valuable addition to your overall financial strategy.

Advantages Of Qualified Charitable Distributions (QCDs)

So, why should you look into making a charitable IRA rollover gift? Here are a few advantages you can benefit from when you make a donation:

Generous Tax Benefits

Making a QCD is a simple way to reduce your tax liability. Those extra thousands you donate will also help shave off a portion of your annual gross income. Depending on how much you donate, you'll lower your tax bracket, avoid paying taxes on SS benefits, and reduce your Medicare premiums.

It Satisfies Your Required Minimum Distributions (RMDs)

If you own a traditional IRA, a SEP, a SIMPLE IRA, or another type of employee-sponsored retirement account, the IRS requires you to take out a distribution each year once you turn 73. However, you can use a charitable IRA rollover gift for your distribution requirements. This means you'll save on taxes while contributing to a cause you care about.

You Don't Need To Itemize Deductions

Itemizing deductions each year could be a pain for many retirees. But with QCPs, you can benefit from a lower tax burden, even if you take a standard deduction. Using this benefit makes it much easier to file each year and eliminates the need to itemize deductions.

LI Cares Needs Your Help

Do you want to make an impact and give back to communities in need? Consider making a charitable IRA rollover gift to LI Cares today. Our organization provides support to thousands of families in need across Long Island. Please reach out to us to learn more about our initiatives and how your QCD could help our organization grow.

How Does A Bequest Work?

A bequest is a clause you put in your will that sets aside a portion of your assets to an individual, organization, or charity. Once it's time, your chosen executor will be in charge of distributing them based on what you put in your will. Bequests are flexible, and you have the power to put any conditions or rules you think are appropriate.

The Connection Between Bequests And Wills

Bequests and wills cannot exist without each other. If you don't have a will, there's no legal way to enforce bequests, even if they were your final wishes. For this reason, you need to plan your estate ahead of time to ensure whoever is in charge of it has clear directions of what to do. Having one with formal bequests could also help prevent any disputes among family members and those closest to you.

Why Should You Make A Charitable Bequest In Wills?

Charitable bequests you include in your will offer several significant advantages to consider:

• Tax Benefits: Charitable bequests are tax deductible from your estate's gross value. This factor makes them a good option if you want to reduce your heirs' tax burden once they collect their part.
• Philanthropic Legacy: Leaving a portion of your estate to charity is a chance to help charities you love and continue supporting their mission after you're gone.
• Personal Legacy: Doing a charitable bequest will help you stay true to your values. You'll continue to leave your mark well beyond your lifetime and inspire possibly those closest to you to continue your legacy.

Start Your Bequest Today

Creating a charitable bequest in your will is a step toward creating a profound impact in your community. If you're ready to make a lasting difference, consider making a charitable bequest to Long Island Cares. Together, we can help feed thousands of families on Long Island and further support our community. Remember, the legacy you choose to leave is a gift that keeps giving long after you've passed.

Most of us are familiar with regular donations, but planned giving is another powerful way to contribute to your favorite causes. This type of philanthropy allows you to make a huge impact for years to come. But how exactly does the process work? Let's learn about how you can start with planned giving today.

What Is Planned Giving?

Planned giving is an effective way to make a large impact on a nonprofit organization's mission for years to come. It can also be a central part of your overall financial and estate planning. Unlike spontaneous donations, you can contribute to an organization using planned assets instead of disposable income. These can include life insurance policies, retirement accounts, real estate properties, and more.

How Planned Giving Can Help You

Through setting up planned donations, you'll leave a positive legacy and ensure your favorite cause receives long-term support. This process is also a smart way to reduce estate taxes, qualify for further tax breaks, and even boost your income, depending on your situation.

For instance, setting up a charitable gift annuity provides a steady income stream for you or another beneficiary while furthering your chosen organization's mission. Also, if you have an IRA and are over 70½, you may avoid taxes on transfers of up to $105,000 when you make a gift.

At Long Island Cares, planned gifts are a lifeline to continue our mission of feeding those in need. Your contribution gives us a stable financial base and long-term funding for our many projects. We'll have more resources for combating hunger, supporting communities, and making a lasting difference in people's lives.

Getting Started With Planned Giving

Planned giving is a powerful tool for philanthropists like you who want to give back. It lets you impact a cause you care about while also benefiting from valuable financial perks.

Our organization relies on the generosity of people like you to continue fighting hunger and giving hope to local families around the Island. In 2022 alone, we distributed over 14 million pounds of food to hungry families in the community. None of this would have been possible without your help.

If you're ready to make a real difference, consider making a planned gift to Long Island Cares or contact our staff to learn more about how you can help. Together, we can make a lasting impact and help those most in need.

Charitable Gift Annuities (CGAs) are a win-win situation. The "win-win" comes when you donate to a charity you love, and in return, the charity commits to providing you with fixed payments for life. To learn more, keep reading about how CGAs work and why you should consider one.

Understanding Charitable Gift Annuities

CGAs are a unique blend of immediate tax relief, lifelong income, and the satisfaction of contributing to a valuable cause. When you create one, you donate cash, stocks, or other appreciated assets to the charity. In return, the organization agrees to pay you a fixed dollar amount annually for the rest of your life. This arrangement is like annuities, where your primary investments yield regular financial returns.

Why Should You Consider a Charitable Gift Annuity?

There are lots of great reasons to consider funding a CGA:

• You Can Make a Big Charitable Gift: CGAs let you donate large amounts to causes you care about. The more you donate, the higher your payments will be. That will help you maintain your lifestyle when you retire.
• Get Dependable Payments for Life: You'll enjoy fixed payments that never change, no matter what happens in the markets. Payments are reliable because your favorite charity's total assets back them.
• Receive Partially Tax-Free Payments: Part of every payment is tax-free, which puts more money in your pocket. This is especially attractive when funding CGAs with appreciated investments.
• Claim a Tax Deduction: When you set up a CGA, you'll receive an income-tax deduction.
• Simple to Establish and Maintain: CGAs are easy to set up and keep. Most charities will handle everything and send you hassle-free on-time payments.

Begin Your CGA Journey Now

Establishing a Charitable Gift Annuity (CGA) is an impactful strategy for philanthropists who want to make a difference. It allows you to positively impact your community while taking advantage of significant financial benefits.

If you're looking for ways to give back, consider setting up your CGA with Long Island Cares. Besides the countless financial advantages you'll have, your contribution helps us fund our initiatives and feed hungry families on Long Island. Don't hesitate to learn more about how your planned gift can help sustain and expand our efforts. Together, we can create lasting change and support those who need it most.