Optimize Your Giving to JMU

For investors who have appreciated assets such as publicly-traded stocks, mutual funds, or have a sizeable IRA, there are significant benefits to gifting those assets to qualified charities or non-profit entities instead of writing checks or using a credit card. Donating such appreciated assets can result in greater tax savings and after-tax results, while still benefiting James Madison University. Before completing your generous donation, it is recommended to consult your financial or tax advisor.

Why donating appreciated securities is one of the most tax-efficient ways to give.

A gift of long-term appreciated securities (stocks or mutual funds purchased over 366 days ago), has become extremely popular by savvy investors and donors due to two key advantages:

  • A tax deduction for the full fair market value of the securities can be taken for those who itemize their deductions (limitations may apply based on donor’s adjusted gross income)
  • Capital gains tax that would otherwise be realized if the appreciated securities are sold is avoided by the donor, resulting in greater tax savings

What you need to know:

  • Contact the JMU Foundation to inform them of your intention to transfer stock or mutual fund shares (888-303-9939 or 540-568-3187). Provide the JMU Foundation with a description of the gift (i.e. security name, , number of shares and approximate value), any restrictions or designations you wish to place on the use of the gift, and the expected date of the transfer
  • Request from the JMU Foundation any additional gift instructions required by your broker to make the transfer (with instructions to the new COB complex)

Note: For individuals with financial advisors, consult your advisor to ensure proper security selection and delivery. Instruct your broker to contact the JMU Foundation with the information about the securities transfer noted above.

IRA Qualified Charitable Distributions

If you are at least 70 ½ by year’s end, you can make your IRA distribution directly payable to JMU Foundation (up to $100,000 per taxpayer per year). You won’t get a charitable deduction, but you won’t owe income tax on the IRA distribution either. Qualified Charitable Distributions can satisfy all or part of your required minimum distribution.

Qualified Charitable Distributions are not eligible from SEP IRAs or SIMPLE IRAs if they are still active and receiving ongoing employer contributions.

Please note: The IRS does not allow a qualified charitable distribution if a good, service or more than incidental benefit is provided in exchange for the IRA contribution.

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