Finding Stability in Turbulent Times

Kathryn Sime, SIU Foundation Senior Director of Gift Planning

Have the constant ups and downs of the stock market lately reminded you of a roller coaster? While a thrill ride in an amusement park may be fun, market volatility can make your head spin and stomach churn for completely different reasons. The good news is that opportunities exist to make a difference through your giving to benefit Southern Illinois University while also offering some potential financial advantages in your planning for the next tax season.

Even though the market is down from the highs of 2021, you may still have some considerably appreciated assets. If you make a gift of stock to the SIU Foundation directly from your brokerage account, you will likely bypass capital gains taxes and may also take advantage of a charitable deduction on your taxes next year. Even better, your stock is sold immediately and turned into student scholarships, faculty development, facility improvements and more at Southern Illinois University.

Some donors use appreciated stock as a basis for a charitable gift annuity (CGA). With a CGA, you receive an annual annuity payment, largely tax-free, with a portion of your gift going to the SIU Foundation at the end of your life. When funded with appreciated assets, you avoid capital gains taxes and may take advantage of a charitable deduction, while benefiting from an annuity based on the current price of the stock when it is gifted to the SIU Foundation. In uncertain financial times, many donors appreciate the constant source of income from the annuity, while also knowing that their gift will ultimately support the mission of Southern Illinois University.

Donors who are 70.5 or older and have an IRA have one more win-win option available: giving through their IRA as a Qualified Charitable Deduction (QCD). A QCD, sent directly from your financial institution to the SIU Foundation, ultimately reduces your income tax obligations related to your required minimum distribution (RMD). While seniors don’t have to take an RMD until they are 72, the option to make a QCD begins at age 70.5.

Want to learn more about how you can find win-win solutions that may provide tax-wise solutions for you and benefit SIUC? First, always consult your financial advisor to learn how these ideas may impact your personal financial situation. Then, for more information about giving through the SIU Foundation, contact Kathryn Sime in the SIU Foundation gift planning office: kathryns@foundation.siu.edu or 618-453-4268.

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