Tax-wise Ways to Give to Chamber Music Hawaii
Make a Gift at Reduced Cost with Appreciated Securities
If you have stock or mutual funds that you have owned for more than one year, that pay you little or nothing, but are worth more than you paid for them, contributing some of these securities to CMH may help you save on your taxes with little impact on your current income. Giving appreciated securities directly to charities instead of cash can result in a double tax benefit that reduces the cost of your gift:
- a federal income tax deduction for the full fair market value, if you itemize deductions
- no tax owed on the capital gain you would pay if you sold them
If you like, you can use the cash you would have donated to repurchase the securities and enjoy a higher cost basis.
To make a gift of securities, please have your broker contact Audra Stevenson at Merrill Lynch at 808-525-7302 for instructions.
Giving from an IRA
If you are 70½ or older and have an individual retirement account (IRA), you have to take a required minimum distribution from the account every year, which is taxable income to you. Alternatively, you can authorize charitable gifts directly from your IRA to one or more charities, like CMH, and have those charitable gifts count as part of your required minimum distribution, but not as taxable income to you. This is a very tax-wise way to make your charitable contributions, especially if you don’t itemize deductions on your tax return.
The annual limit for an individual to give to charities in this way is $100,000. These charitable distributions must go directly from your IRA to the charities. If you withdraw the funds yourself and donate them, they will count as income to you and could increase your taxes. Therefore, please ask your account administrator to send your contributions directly to the charities you wish to support.
For CMH the address is: General Manager, Chamber Music Hawaii, P.O. Box 61939, Honolulu, HI 96839.
Thank you very much for considering support for CMH!
This information is not intended as tax or financial advice. We recommend that you always discuss charitable gifts with your advisors to help you decide what is best for you.