The Roanoker - March/April 2015 - 43

Investing
in Roanoke:
Charitable
Strategies
Lessening your tax burden while making
contributions to established worthy
causes in the valley is a clear win-win,
and now's the time.
BY CYNTHIA PETZOLD,
COMMONWEALTH FINANCIAL PLANNING, LLC
SPRING IS TAX SEASON, and a good time to consider not only new investment possibilities but also how
best to donate to your favorite charity in the Roanoke
Valley. Through charitable investing, you can accomplish both while reducing your tax burden - possibly
receiving supplemental income - and supporting charitable work that matters to you. And if you represent a
local business, supporting charities will enhance your
company's reputation in the community and potentially attract new customers.
Charitable giving and investing can be valuable tools
for tax, retirement and estate planning. Donations and
donor-advised funds offer tax deductions, while charitable trusts and annuities offer a partial tax deduction
and provide a source of income for the investor or heirs.
Outright gifts are eligible for a tax deduction, and the
qualified charity gains immediate access to the money.
The larger the donation, the greater the tax benefit (up
to 50 percent of the donor's adjusted gross income).
While donating cash is good, donating appreciated
securities is even better. By donating stocks or mutual
funds which have grown in value directly to the charity,
the savvy investor can circumvent the capital gains tax
while providing the charity with the full fair market
value of the donated securities.
Bequests, or end-of-life gifts of cash, stocks, mutual
funds or other assets, provide a donation to the charity
and income and estate tax benefits to the donor's estate.
Investors can also name a charity as beneficiary of all
or part of their employer retirement plan (like a 401(k)
or 403(b)), IRA or life insurance policy assets.
Donor-advised funds (DAFs) give investors greater
control over how their gifts are used. The investor receives a tax deduction for the fair market value of the
gift on the date of donation, and the DAF invests the
proceeds. As the gift grows, the donor can make grant
THE

R OANOKER.COM

recommendations every year. Although DAFs may
incur some administrative fees and require a minimum investment, they are growing in popularity due
to their flexibility and convenience of managing (often online). Popular DAFs include the Foundation for
Roanoke Valley, Fidelity Charitable Gift Fund, Schwab
Charitable Fund and Vanguard Charitable Endowment
Program.
Charitable trusts, charitable gift annuities and
pooled income funds can all provide a benefit to both
the qualified charitable organization and the donor or
the donor's family members or heirs. Because of this
dual benefit, these are regarded as partial charitable
gifts and are best established with the help of an estateplanning attorney.
Your investments can make a difference in the Roanoke Valley if you decide to invest in one of these
prominent area charities:
* United Way of Roanoke Valley: community education, health and financial stability.
* Roanoke Valley SPCA: animal welfare.
* Rescue Mission: social welfare.
* Roanoke Symphony Orchestra: music and arts.
* Boys and Girls Club of Southwest Virginia: youth
development.
* Habitat for Humanity: affordable housing.
* Red Cross-Roanoke Chapter: health, safety and
disaster relief.
To learn more about these charities and charitable
giving, visit these websites:
* Charity Navigator: charitynavigator.org
* CharityWatch: charitywatch.org
* BBB Wise Giving Alliance: give.org
Your charitable contributions can make a difference
for your finances, your family, and the organizations
you support. I

Your charitable
contributions can make a
difference in the Roanoke
Valley.

MARCH/APRIL 2015

http://www.charitynavigator.org http://www.charitywatch.org http://www.give.org http://www.THEROANOKER.COM

The Roanoker - March/April 2015

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