Gifts That Reduce Your Taxes

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You can empower ADL to continue the fight against anti-Semitism and bias, bigotry and discrimination. And what’s more, you may receive tax benefits for these generous gifts.

Retirement plan gift

Retirement plan gifts are an increasingly popular gift option for many ADL supporters. Because retirement plans are taxed differently than most assets, they may become a tax liability. Naming ADL as a beneficiary of your retirement account can be an attractive option for creating a legacy and reducing income and possibly estate taxes for your loved ones.

Income taxes payable by your beneficiaries on retirement assets can be as high as 37%. This means, for example, that a $100,000 IRA will be worth only $63,000 when it gets to your loved ones.

Naming ADL as a beneficiary of your retirement assets generates no income taxes. ADL is tax exempt and eligible to receive the full amount. This means that a $100,000 IRA given to ADL will be worth the full $100,000.

Leaving a gift of retirement plan assets to ADL means that 100% of your gift will be used to help create a world free from bigotry and hate.

Beneficiary

Your Heirs

ADL

Gift Amount

$100,000

$100,000

Income Tax (est. 37%)

$37,000

$0

Net to Beneficiary

$63,000

$100,000

*Tax rates shown reflect 2018 tax law changes. Estate tax not shown because it applies infrequently.

To name ADL as a beneficiary of a retirement plan, simply contact your plan’s administrator.

Important: Please notify us of your retirement plan gift intention. Some financial services firms may not let us know about your gift after your lifetime. To ensure that your gift is made as you intend, please let us know.

IRA Charitable Rollover — an immediate giving option

Transferring funds from an IRA to ADL is an effective way to create a legacy of acceptance and inclusion.

Here’s how it works:

  • You must be 70½ or older.
  • An individual may transfer up to a total of $100,000 per year, and a married couple may give up to $200,000.
  • Your gift must be transferred directly from your IRA account to ADL.
  • Your gift is a transfer of funds from your IRA to ADL, so while you do not receive a charitable deduction, it does not create taxable income for you.
  • The transfer of funds can count towards your annual Required Minimum Distribution from your IRA as long as your gift is received by December 31. If you are using a checkbook issued by your IRA administrator to make your gift, please send your gift as early as possible to ensure that it qualifies for a distribution in the current year.

If you’re interested in this popular way to support ADL, download a sample letter for your IRA administrator.

Life insurance policy gift

It’s not uncommon for people to have a life insurance policy that has outlasted its original purpose. If you have a life insurance policy, you can use it (or a percentage of it) to reduce your taxes and create a gift for ADL that demonstrates your commitment for a better world by fostering the acceptance and inclusion of all people.

  • Request a beneficiary designation form from your life insurance company and make ADL a full, partial or contingent beneficiary.
  • Sign over a fully paid policy. You will be allowed a tax deduction for your generosity.

Potential benefits:

  • You could reduce your income taxes;
  • You might receive additional tax deductions if you make annual gifts so ADL can pay the premiums;
  • You can see firsthand how your gift supports the fight against hate if ADL cashes in the policy;
  • You can create your legacy of fighting anti-Semitism and hate. If ADL retains the policy to maturity or you name it as a beneficiary, once the policy matures, the proceeds of your policy will be paid to ADL.
Gifts of real estate

You could consider donating real estate, such as a home, vacation property, undeveloped land, farmland, ranch or commercial property:

  • An immediate gift of real estate. Donating property outright to ADL frees you from the costs and responsibilities of ownership. If you have owned the property more than a year, you will enjoy a charitable income tax deduction equal to the property’s full fair market value. You will eliminate any capital gains, and the gift reduces your future taxable estate.
  • A gift of real estate by bequest. You can include a gift of real estate to ADL in your will or living trust, and you will be eligible for a charitable estate tax deduction upon your death.
  • A retained life estate: You donate your home to ADL but retain the right to live in it for the rest of your life, a term of years or a combination of the two.

These gifts are accepted on a case-by-case basis. Please contact us to discuss whether your property may fund a gift to ADL.

Gifts of appreciated securities

You can use stocks, bonds and mutual funds that have grown in value to create your legacy of fighting hate with ADL.

Potential benefits:

  • You may receive a charitable income tax deduction for the full market value of the securities (up to a maximum percentage of your adjusted gross income as dictated by tax law);
  • You could avoid paying the capital gains tax on any increase in the value of the stock you give.

Please contact us so that we can assist you with transfer instructions.

Have questions? I'm here to help.

David A. Moses

David A. Moses

Senior Director, National Estate and Gift Planning

605 Third Avenue
New York, NY 10158
(888) 235-9710
plannedgiving@adl.org
Arrange a conversation with me.