Giving to Denver Urban Gardens (DUG) is a simple way to help cultivate food, community, and climate resilience across the Denver metro area. And with a few smart strategies, your gift can help you reduce your tax liability, making it a win-win! Here are some ways to give that may provide financial benefits for you while supporting a cause you care about.
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Give Through Your IRA with a Qualified Charitable Distribution (QCD)
If you’re over 70½, a Qualified Charitable Distribution (QCD) allows you to donate directly to DUG from your IRA. This donation counts toward your Required Minimum Distribution (RMD) but doesn’t increase your taxable income. By giving directly, you can avoid paying income tax on this portion of your retirement savings.
Why This is Smart: If you don’t need your full RMD for personal expenses, this is a great way to support DUG while lowering your taxable income. Plus, it’s a straightforward process that many retirees find very manageable.
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Donate Appreciated Stock Instead of Cash
If you own stocks that have gone up in value over time, consider donating shares instead of selling them and then donating cash. By donating the stock directly, you avoid paying capital gains tax on the increase in value. Plus, you can still deduct the full market value of the stock (if you itemize your deductions), which means more goes to DUG, and you save more.
Why This is Smart: If you’ve got stocks that have grown significantly in value, this is an easy way to make a more substantial gift without incurring extra taxes. It’s a powerful option for anyone with an investment portfolio they’d like to leverage for good.
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Give Through a Donor-Advised Fund (DAF)
A Donor-Advised Fund (DAF) is a special account set up for charitable giving. You contribute to your DAF, get a tax deduction right away, and then recommend grants from the fund to nonprofit organizations like DUG whenever you’re ready. With a DAF, you can set aside money for charity now and decide how you’d like to distribute it over time.
Why This is Smart: This is a great option if you want to make a larger charitable gift this year for tax reasons but aren’t sure exactly where you want it to go just yet. It also allows you to manage your giving professionally, which can be helpful if you have a variety of causes you want to support.
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Name DUG as a Beneficiary on a Retirement Account or Life Insurance Policy
By listing Denver Urban Gardens as a beneficiary on a retirement account (like an IRA or 401(k)) or a life insurance policy, you can leave a legacy gift that goes to DUG after your lifetime. This is as simple as updating the beneficiary forms with your financial provider.
Why This is Smart: Designating DUG as a beneficiary is a simple way to make a lasting impact without affecting your current finances. Plus, because DUG is a tax-exempt organization, they can receive the full amount of the gift without it being reduced by income tax.
