Help Bring the Gift of Sight to More People in 2023 with Your Gift in 2022!
Gifts of stock and direct transfers from IRAs can bring significant benefits to you while helping vulnerable people around the globe improve or even restore their sight. Here’s what you need to know:
Required Minimum Distributions from IRAs
If you are 70-and-a-half years old or older, the IRS requires you to start withdrawing from most types of tax-advantaged retirement accounts, commonly called “Required Minimum Distributions” (RMD). You must also take RMDs from retirement accounts you inherit. For most people, the deadline for taking an RMD is December 31. If you miss the deadline or take less than you’re supposed to, you could be subject to a 50% tax penalty.
You can give up to $100,000 to charity tax-free from an IRA and have it count as your required minimum distribution for the year isn’t included in your adjusted gross income-- even if that’s more than your RMD.
How to Direct Your RMD to VHI:
The donation must be distributed directly from the IRA to VHI for it to count as the tax-free transfer. Ask your IRA administrator to contact VHI about making a direct transfer, or have your IRA administrator send a check directly from your account to VHI. If you have check-writing privileges for your IRA, you can write a check to us.
Gifts of Stock
A gift of appreciated stock generally offers a two-fold tax advantage: you avoid paying capital gains tax on the increased value of the stock and you receive an income tax deduction for the full fair market value of the stock at the time of the gift.
All you need to do is obtain the transfer information from VHI and then write a letter to your broker instructing him to make the transfer. If you sell the stock and write a check to the foundation directly, you will lose the tax benefit of transferring an appreciated asset.
If you have owned stock for more than a year, you may qualify for these significant tax advantages. Your gift of stock must be transferred to VHI on or before December 31 to qualify for a deduction in that tax year. Therefore it is wise to contact your broker or trust officer several weeks in advance to ensure the transfer takes place in time.
It’s Easy to Make a Gift of Stock!
Here’s how:
1. Call VHI to obtain this "stock transferring information:" a) our gift account name and account number; b) the name and DTC number of VHI’s brokerage firm. Calling us in advance also will allow us to alert our broker to receive the stock.
2. Let VHI know if there is a specific purpose for the contribution, such as an annual gift, pledge payment or a gift restricted to a specific program.
If you have a brokered account , donating stock through electronic transfer is the easiest and most expedient method. Depository Trust Company, or DTC, is the clearinghouse for VHI’s electronic security transfers. Each brokerage firm has a specific DTC number.
Provide VHI’s "stock transferring information" (see above) to your transferring broker, along with the name of the stock and the number of shares or value you wish to transfer. You will receive an official receipt from VHI for the value of your gift as of the close of the stock market on the day of transfer.
If you have stock certificates , you will need a "stock power" form from VHI or your broker to re-register the stock in VHI’s name. Send the completed and signed stock power form to VHI and under separate cover send your unsigned stock certificates to VHI. Please contact VHI, as we do not recommend sending a signed certificate through the mail.
Please check with your personal tax advisor regarding how donating stocks may affect your particular tax situation.
If you have questions about donating to VHI, please do not hesitate to contact us with any questions!
To whom it may concern,
Please transfer xx number of shares of ABC stock from my brokerage account (donor’s account number) to the following institution as a charitable donation.
US Bancorp Investments
FBO Vision Health International
DTC - 0280
VHI account number (please contact us to get this number!)