Tax Savings Through Charitable Contributions

There are many ways you can save on taxes while making a difference for Southeastern Pennsylvania.

Type of Contribution to The Philadelphia Foundation

Checks or Credit Card Donations

Tax Benefits

You can deduct up to 50% of your adjusted gross income.

Publicly Traded Securities & Mutual Fund Shares

Not all types of mutual funds can be easily transferred.

Please check with us to be sure we can accept your gift.

Tax Benefits

You get:

  • An immediate charitable deduction for 100% -- the full fair market value -- of the donated assets for up to 30% of your adjusted gross income.
  • Exemption from any capital gains tax on any appreciation of the stock or mutual fund from the time you bought it.

Depreciated Stock

You must sell the stock first.

Tax Benefits

You get:

  • The ability to deduct the decrease in value from your income, thereby reducing your tax liability.
  • An immediate charitable income tax deduction for 100% -- the full fair market value -- of the donated assets for up to 30% of your adjusted gross income if you contribute the proceeds from the sale of the stock.

Life Insurance Policy

Policy is donated to The Philadelphia Foundation.

Tax Benefits

You get:

  • Annual tax-deductible contributions worth up to 50% of your adjusted gross income to cover the policy’s annual premium.
  • Or, if the policy is paid up, an immediate tax deduction in an amount equal to the policy’s cash surrender value.

Retirement Assets

Qualified retirement plan accounts are subject to layers of taxation (i.e., estate tax, federal income tax and state income tax). The remainder of your retirement account can be replaced with an asset replacement trust.

Art, Collectibles, and Other Tangible Property

Tax Benefits

  • You can eliminate or reduce capital gains taxes, depending on the property donated.
  • You also get a tax deduction on the amount for which the item is appraised.

Real Estate

Property is donated to The Philadelphia Foundation for resale.

Tax Benefits

You can deduct the full fair market value of the property and avoid a capital gains tax.

Charitable Gift Annuity

Established through the transfer of cash or appreciated securities to The Philadelphia Foundation.

The annuity provides decades of fixed payments for up to two people.

Tax Benefits

You get:

  • A tax deduction in the year the CGA is established that is equal to the charitable contribution of the gift.
  • Tax-free income on a portion of each quarterly payment issued for the duration of the annuity.
  • Reduced capital gains tax on the appreciated securities.

Pooled Income Funds

A type of mutual fund maintained by a charitable organization, with up to two life income beneficiaries who receive quarterly income payments for life.

Tax Benefits

You get:

  • A tax deduction on the charitable contribution of the gift (based on IRS tables).
  • No capital gains tax on any appreciated securities that are contributed.
  • No estate tax on your interest in the fund

Charitable Remainder Trusts

Provides life income to you or your designated beneficiary.

Both Unitrusts, which pay variable income, and Annuity Trusts, which pay fixed income, are available through The Foundation.

Tax Benefits

You get:

  • An immediate charitable tax deduction for the charitable portion of the trust.

Charitable Lead Trusts

Allows for future transfer of assets to your designee.

Tax Benefits

You get:

  • An immediate charitable tax deduction for the charitable portion of the trust.

Important Note

Policies and laws governing charitable gifts are subject to change. Always discuss your plans with your attorney, accountant or financial advisor.

Schedule a confidential conversation about tax savings for charitable purposes.
Call 215-563-6417 or email us.

Contact Us

1835 Market Street, Suite 2410 | Philadelphia, PA 19103-2968 | Directions

Phone: 215-563-6417 | Email Us

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Address

1234 Market Street, Suite 1800
Philadelphia, PA 19107

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