The Taxman Cometh

Smart Moves to Make Your Giving Work Harder

Most people would prefer not to think about taxes. It’s one of the reasons why The Beatles’ “Taxman” is still a relevant song after 60 years. Yet, with a little planning, your charitable giving can make an even greater impact on future Mary Washington students while allowing you to take advantage of the following valuable tax strategies:

Already taking an RMD? Consider giving directly from your IRA.
Qualified Charitable Distributions (QCDs) have been available since 2015, yet many retirees still take their Required Minimum Distribution as taxable income before making charitable gifts. If charitable giving is important to you, a QCD may satisfy all or part of your RMD while keeping the distribution out of taxable income—one of the simplest ways to make your generosity work harder. 

Appreciated stock may be your best gift.
If your investments have grown significantly, donating shares directly to charity instead of selling them first may help you avoid capital gains tax while potentially increasing the impact of your gift.

Major financial changes can create giving opportunities.
Retirement, selling appreciated property or a business, or converting a traditional IRA to a Roth can change your tax picture. A well-timed charitable gift may reduce your tax bill while advancing the causes you care about.

Leave the right assets to the right people.
Not all assets are taxed the same. Retirement accounts are often among the most tax-efficient assets to leave to charity, while others may be better suited for loved ones. A thoughtful estate plan can maximize your generosity while preserving more for your heirs.

Your legacy can begin with a simple provision in your will.
Long after we’re gone, our values live on through the lives we touch. For many supporters, that means creating opportunities for future Mary Washington students. A gift through your will or trust can carry your commitment forward for generations—often without affecting your financial security during your lifetime.

If you’re curious which strategies might work best for you, I’d be glad to explore them with you and your professional advisors. For more information, email jvaughn@umw.edu, call 540-654-2063, or visit umw.mygiftlegacy.org.

This article was written by Jeremy Vaughn ’08, executive director of gift planning and major gifts.