As we approach the end of the year, many Kids Cancer Alliance (KCA) supporters are considering how best to align their charitable giving with their financial and tax planning goals. Did you know that your generosity can do more than just support our mission? It can also provide you with significant tax benefits. Here’s how you can make the most of your year-end donations while helping us continue our vital work.

Charitable contributions can reduce your taxable income, potentially lowering your tax bill. By itemizing your deductions, you can receive a deduction for the full value of your gifts to qualified charities like KCA.

Year-End Giving Strategies

Qualified Charitable Distributions (QCDs)

If you’re 70½ years or older and have an Individual Retirement Account (IRA), you can donate directly from your IRA to a charity without having to pay income taxes on the distribution. This is known as a Qualified Charitable Distribution (QCD). Not only does this fulfill your required minimum distribution (RMD) for the year (which start at age 72 ½), but it also reduces your taxable income, even if you do not itemize deductions. QCDs are a powerful way to support KCA while lowering your taxable income.

Donor-Advised Funds (DAFs)

Donor-Advised Funds offer a flexible and tax-efficient way to manage your charitable giving. By contributing to a DAF, you can take an immediate tax deduction for the amount donated, and then make contributions to charitable organizations, like KCA, over time. This allows you to maximize your tax benefits in a year when you need them most, while thoughtfully planning your giving for years to come.

Donating Appreciated Stock

Donating appreciated stock is a highly tax-efficient way to support KCA. If you’ve held a stock for more than one year and it has appreciated in value, you can donate it directly to KCA and avoid paying capital gains taxes. Additionally, you can deduct the full fair market value of the stock at the time of the donation, provided you itemize deductions. This strategy allows you to give more and save more, making a bigger impact on our mission.

Other Giving Strategies

Legacy Giving

Consider leaving a lasting impact through planned giving. This can include bequests in your will, charitable trusts, or naming our charity as a beneficiary of your retirement plan or life insurance policy. Planned gifts can offer significant tax advantages, such as estate tax reductions, while ensuring that your generosity continues to make a difference well into the future. Your legacy can be one of hope, transforming lives for years to come.

Monthly Recurring Giving

One of the simplest yet most effective ways to support our mission is through monthly recurring giving. By setting up a recurring donation, you provide us with a predictable stream of income, allowing us to plan and sustain our programs more effectively throughout the year. This consistent support is invaluable in helping us meet ongoing needs and respond quickly to unexpected challenges.

Start Planning Your Year-End Giving Today

As you review your finances this year, consider how your charitable giving can make a lasting impact—both for our organization and for your financial well-being. We encourage you to consult with your tax advisor to explore which giving strategies are best for your situation.

Your support is the cornerstone of our mission, and we are deeply grateful for your generosity. By planning your year-end giving, you can maximize both your tax benefits and the positive change you bring to our community. Together, we can continue to make a difference in the lives of those we serve.

Thank you for being a part of our journey.

Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.