Give: Tax Advantaged Ways to Give

An Easy Way to Donate

Gifts of appreciated stocks, bonds, real estate, tangible assets — or just a check — are the easiest and most direct way to support Temple Sinai. These gifts are the most immediate way to enhance Temple life, and they often lead to an immediate tax deduction. Plus, a gift of appreciated property can yield additional tax savings.

“Bunching Donations”

If you anticipate your total itemized deductions will be slightly below your standard deduction amount, you can combine or “bunch” contributions for multiple years into a single tax year. With bunching, you would itemize deductions on your current tax return and take the standard deduction on your future return to potentially produce a larger two-year deduction than you would get by claiming two years of standard deductions.

Minimize Taxes on a Retirement Account Withdrawal

Charitable deductions may also help lower taxes on withdrawals from your tax-deferred retirement accounts. Taking a distribution offers tax benefits by potentially reducing your taxable estate and the tax liability for account beneficiaries. But remember, you generally need to be over age 59 ½ to avoid an early withdrawal penalty.

Qualified Charitable Distributions (QCDs)

For those who are 70 ½ or older, Qualified Charitable Distributions (QCDs) are a great way to support Temple Sinai during your lifetime. A Qualified Charitable Distribution (QCD) is a direct transfer from your IRA to a qualified charity, totally free of federal tax. In 2023, you can direct up to $100,000 (up to $200,000 for married couples filing jointly if you are both 70 ½ or older and both have your own IRA) from an IRA to operating charities. QCDs count toward your annual required minimum distribution (RMD) if certain rules are met. A QCD is often more tax efficient than taking the required distribution and making donations separately.

Please note: As part of the recently passed SECURE Act 2.0 legislation, the annual QCD limit will be adjusted for inflation starting in 2024. The new law allows you to direct a one-time $50,000 QCD to a charitable remainder trust or charitable gift annuity in 2023. Temple Sinai would qualify for such a gift.

Please be in touch if a conversation would be useful to you. Executive Director Terrie Goren (terrie@oaklandsinai.org) and Rhonda Hartman (rhonda@oaklandsinai.org) are standing  by and ready to answer any questions that you may have. You may also contact them at the Temple office at (510) 451-3263.

Please remember that information from Temple Sinai is intended to be educational and is not intended as legal or financial advice. Please check with your financial and legal advisors on how best to take advantage of these and other tax advantaged ways to benefit Temple Sinai.