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Happy Children
Boys and girls benefit most
from a wide variety of sports
and activities.
Your legacy gift will support
Kare Youth League and can
reduce your taxes.

Gifts that Reduce Taxes

A variety of gifts to Kare Youth League can help reduce income, capital gains or real estate taxes.

Here are some of the most common ways:

Two Happy Girls

MANY GIFTS THAT SUPPORT THE KARE YOUTH LEAGUE PROGRAM ALSO REDUCE TAXES.

A Qualified Charitable Distribution from an IRA

Kare Youth League supporters, age 70½ or older, can get a tax break while supporting boys and girls with a qualified charitable distribution (QCD) gift. With a qualified charitable distribution, you get many benefits.

  1. Make a qualified charitable distribution from your IRA to Kare Youth League and avoid paying income taxes on your donation.
  2. You can donate up to a total of $100,000 each year ($200,000 for married couples) and exclude the gift from your taxable income.*
  3. Support children to build strong character and a better future.

*Complete your transfer before December 31. You should initiate your year-end transfer prior to December to ensure that the transfer is completed by December 31. Gifts made by IRA checkbook and received by Kare Youth League after December 16 may not arrive in time for the IRA custodian to count the gift as a distribution for the current year.

The Setting Every Community Up for Retirement (SECURE) Act

The SECURE Act raises the required minimum distribution (RMD) age. If you reached age 70½ in 2020 or later, you must take your first RMD by April 1 of the year after you reach 73.

You can still make a gift to Kare Youth League and other charities through a qualified charitable distribution starting at age 70½. However, if you make IRA contributions after age 70½, as allowed under the SECURE Act, the amount you have available for qualified charitable distributions is reduced. Please consult your tax or financial advisor to learn how this may impact you.

The SECURE Act repeals the maximum age for making IRA contributions. You can now contribute to your IRA even if you are over age 70 (subject to annual limitations).

The SECURE Act decreases the time over which inherited IRAs may be distributed. Inherited IRAs must now be distributed completely within 10 years of the IRA owner’s death, unless the IRA beneficiary is the surviving spouse, disabled or chronically ill, less than 10 years younger than the owner, or the owner’s minor child. Under these rules, naming Kare Youth League as a beneficiary of your IRA while using other assets to benefit family members may be a smart charitable planning decision.

A Gift Annuity Funded with Stock

If you have stocks that you have held for more than a year and have increased in value, you can use them to fund a Kare Youth League charitable gift annuity and you will bypass a significant portion of the capital gains tax. The remaining gain will be apportioned over several years of your annuity payments rather than being taxed all at once. Plus, you will enjoy the other benefits of a gift annuity – eligibility for an immediate income tax deduction and a fixed annual payment for life – at an attractive payment rate.

Jocelyn, age 82, establishes a $50,000 charitable gift annuity with stock that she originally purchased for $10,000. In addition to an annual payment of $3,500 for as long as she lives and an income tax charitable deduction, more than $20,000 of her capital gain on the stock’s appreciation will never be taxed.*

*Based on payment rates as of July 1, 2020. For illustration purposes only.

 
Donor Advise Fund Graphic

Gifts from Your Donor Advised Fund

You may want to continue making an annual donation to Kare Youth League but may no longer be able to itemize and deduct your donations each year as a result of the tax change. You may choose to make a gift to a donor advised fund (DAF) in an amount greater than the standard deduction, allowing you to receive the tax advantages of giving in that year. You can then maintain your regular annual support to Kare Youth League through annual recommended grants from your DAF in subsequent years when you do not itemize.

A Charitable Remainder Trust

A charitable remainder unitrust with Kare Youth League can provide you and/or other beneficiaries with income for life or for a fixed number of years. For your donation, which can be appreciated securities or real estate, you receive an immediate income tax deduction for a portion of your contribution to the unitrust and savings on capital gains taxes, too. You will also have the satisfaction of making a significant gift that benefits you now and Kare Youth League later.

With this type of gift you can:

  • Avoid paying capital gains on sales of appreciated stock and real estate
  • Convert the full value of stock into a lifetime income stream
  • Receive a significant charitable income tax deduction
  • Remove assets from your taxable estate

A Charitable Lead Trust

A charitable lead trust is a way of making a gift to Kare Youth League that enables you to reduce gift and estate taxes while controlling the timing of passing assets to your children and grandchildren.

You contribute securities or other appreciating assets to a charitable lead trust. The trust makes annual payments to Kare Youth League for a period of time. When the trust terminates, the remaining principal is paid to your heirs.

Benefits to You:

  • The present value of the income payments to Kare Youth League reduces your gift/estate tax.
  • All appreciation that takes place in the trust goes tax-free to your heirs.
  • The amount and term of the payments to Kare Youth League can be set so as to reduce or even eliminate transfer taxes due when the principal reverts to your heirs.
  • You have the satisfaction of making a significant gift to Kare Youth League now that reduces the taxes due on transfers to your heirs later.

Gifts of Retirement Plan Assets

Because retirement plans are taxed differently than most assets, they may actually become a tax liability. Naming Kare Youth League a beneficiary of your retirement account can be an attractive option for leaving a legacy and reducing income and possibly estate taxes for your loved ones.

Making Kare Youth League a beneficiary of a retirement account is easy. Simply ask your plan administrator for a beneficiary designation form and include Kare Youth League as beneficiary of a specific percentage of the account value or as a contingent beneficiary.

Sample Retirement Plan Assets Chart

Retirement Plan Assets Chart

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

Gifts of Real Estate 1

Gifts of Real Estate

An immediate gift of real estate

Donating property outright to Kare Youth League 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 gain and the gift reduces your future taxable estate.

A gift of real estate by bequest

You can include a gift of real estate to Kare Youth League in your will or living trust and you will be eligible for a charitable estate tax deduction upon your death.

A life income gift funded with real estate

Convert your real estate investment into a predictable income flow and realize capital gains and other tax benefits.

We’re Here to Help

Dan Kirby

Dan Kirby

Director
Kare Youth League Planned Giving
(626) 201-0063
Email: plannedgiving@kyl.org

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Kare Youth League • PO Box 662080, Arcadia, CA 91066-2080
Kare Youth League is a 501(c)(3) tax-exempt organization (EIN: 95-1869644), and your donation is tax-deductible within the guidelines of U.S. law.