Search Site
Menu

Remember to Give Back to Charity at This Time of Year

Remember to Give Back to Charity at This Time of Year

We still have a few days left in 2020, and there a lot of ways that you can give to your favorite charity.  This blog discusses several different ways to give to charity for year-end and also discusses different ways to give to charities in your estate plan.

Five State Tax Credits for Arizona Tax Payers

First, before I discuss them, I want to mention the 5 state tax credits that Arizona tax payers have to support their favorite schools and charities:

  • Public School Tax Credit – Maximum Credit: $400 for married couples filing jointly; $200 for all other fliers.
  • Qualifying Charitable Organizations – Maximum Credit: $800 for married couples filing jointly; $400 for all other fliers.
  • Qualifying Foster Care Charitable Organizations – Maximum Credit: $1,000 for married couples filing jointly; $500 for all other fliers.
  • Certified School Tuition Organizations

Two separate tax credits are available for contributions to Certified School Tuition Organizations (“STO’s”) for scholarships for students in Arizona private schools.

  1. “Original” Individual Income Tax Credit (Maximum Credit: $1,186 for married couples filing jointly; $593 singles, heads of household, or married couples filing separate).
  1. “Switcher” Individual Income Tax Credit. This tax credit is available to individual taxpayers who donate the maximum amount allowed under the “original” credit and make an additional donation to a STO (Maximum Credit: $1,179 for married couples filing jointly; $590 singles, heads of household, or married couples filing separate).

Five Ways to Give to Charity This Year

Second, here are 5 ways that you can give this year to charity outside of the state tax credit gifts:

  1. Outright. You can always give a check or make an online donation to your favorite church or charity.
  1. Gifts of Appreciated Stock. In addition, if you have highly appreciated stock, consider giving the stock to your favorite charity, as the charity will not have to incur any capital gains tax when the stock is sold.
  1. Charitable Annuities. Next, depending on your age, consider a charitable annuity.  This allows you to make a donation this year, get an income tax deduction this year, and receive an income stream over your lifetime.
  1. Make a Qualified Charitable Distribution from Your IRA. If you are at least 70 ½, then you can make a donation out of your IRA directly to the qualified charity of your choice without paying any income taxes.
  1. Set Up a Donor-Advised Fund. Not sure where you want to donate, but want to get the income tax deduction in 2020?  Consider opening a donor-advised fund in your name to receive the donation this year and figure which charity or charities to choose next year.  Check with your local community foundation or with Charles Schwab or Fidelity for details.

Five Ways to Leave a Charitable Legacy in Your Estate Plan

Finally, you can also include a charitable gift in your estate plan.  Here are 5 ways for you to leave a charitable legacy in your estate plan:

  1. Make an Outright Gift in Your Will or Trust. When you pass away, give a certain dollar amount or percentage of your estate to your favorite charity.
  1. Establish an Endowment for Your Favorite Charity. An endowment is a restricted fund established to invest the principal and allow the income only to be distributed to your favorite charity each year.  Once established, this endowed gift will keep giving every year to that charity forever.
  1. Name Your Favorite Charity as the Beneficiary of Your IRA or Life Insurance Policy. Instead of naming your children, grandchildren, or another beneficiary, consider naming your favorite charity instead.  For IRA’s, there is an added benefit, because the charity does not pay any income taxes on the distributions.
  1. Name Your Donor-Advised Fund as the Beneficiary of a Portion of Your Estate. Not sure which charity to choose after you are gone?  Consider naming your donor-advised fund as the charitable beneficiary.  After you are gone, the successor advisors of your donor-advised fund can make the decision based on your wishes.
  1. Charitable Remainder Trusts. There are several variations of these trusts, but generally these types of trusts allow you to donate the principal to a charity in trust, with an income stream distributed out to an individual or individuals for life, and the balance distributed to charity after the donor’s passing.

Need help? Please call me today – 602.277.7000

John EvenOur firm has helped hundreds of families just like yours handle a wide variety of estate planning, business planning, probate, trust, and elder law issues. When families or business owners are not getting along, we can also handle any disputes and litigation related to their businesses, wills, trusts, guardianships, or conservatorships. Please give me a call, so that I can help you work through these difficult issues with confidence.

  • To receive your free article on 7 Common Estate Planning Mistakes

  • Testimonials
    • "Thank you for my peace of mind, knowing that my estate and medical attention are in place for my children to handle easily. I appreciate your expertise covering areas I was unaware I should address. John and his staff were very professional and efficient in my estate amendment. I highly recommend this office."  -Chris February 28, 2025

    • "One of the best decisions I ever made was selecting John Even to oversee settlement of my mom’s estate/trust. His wisdom and insight on reaching a positive outcome for each family member was priceless. Without his patient encouragement over three years, I would have settled for a bad compromise early on. Each meeting was concise and educational. John only proposed a meeting when necessary, saving our estate thousands of dollars. "  -Bradley December 03, 2024

    • "It was a pleasure to work with Attorney John B. Even and his excellent legal assistant, Emily, and paralegal, Jacqueline. This competent team seamlessly worked to develop our Will and Family Trust. Mr. Even patiently explained each document to us. John is a knowledgeable and compassionate attorney with a deep understanding of the law and a great ability to clearly explain complex legal issues. "  -Rita November 22, 2024

    • "I enjoyed working with him and his team - everybody was delightful, and they made the process very easy. John is warm and friendly, impressively knowledgeable and explained all the details in simple terms for me to understand. I now have peace of mind about how my assets will be distributed and wishes will be carried out and know that my loved ones won't be burdened by debate, hassle, or financial hardship if I ever end up incapacitated."  -Mirelle April 18, 2024

    • "We have known John Even for many years. So, I will say that he was our first choice. I get many advertisements in the mail for trusts and estate planning and at various prices. I called a few of them. We stayed with John for several reasons. He had a flat fee with us. So there was NO chance of getting billed extra hours for this and that. Which is often the cast once you sign on the dotted line. John was very explanatory about the process of setting up a trust, He looked at all our information. our children, accounts, and many things I had never considered. This was what I needed to get clear on the whole process. "  -Thomas January 28, 2024

    • "Attorney Even and his staff are professional, personable, responsive, and clearly expert in the estate planning world. The time spent gathering our information allowed Mr. Even to produce thoughtful, custom documentation that will serve us well. The print and electronic versions of our records that were provided will make maintaining them, and sharing them as appropriate, very easy...a real plus."  -Larrh January 24, 2024

    • "Our Estate Planning journey with John B. Even and his team was a “5 Star” experience! John’s character, values, and knowledge was evident throughout the entire process. John and his team listened carefully to our wishes, and yet, asked great questions to help us collaborate on exactly the right Estate Plan. We would highly recommend John and his team!"  -Rob & Terri September 25, 2023

    • "Once I made my initial call to Mr. Even‘s office I never looked back – great decision! His staff is courteous, caring and efficient. Mr. Even is professional, highly knowledgeable, good listener and adviser. I highly recommend Mr. Even. It is a privilege to have him on my team!"  -Trusts & Estates May 14, 2018

    • "John is an excellent wordsmith, and did a great job of putting my thoughts, ideas, and issues into a clear legal document. I have known and worked with him for 25 years on business issues, including business purchases, of two companies and then selling them for retirement. He is also a delightful person to work with and has an excellent group of to-workers."  -Estate Planning May 3, 2018

    • "He was willing to spend time explaining things."  -Estate Planning February 24, 2018

    Affiliations
    Office Location
    • Phoenix Office
      1221 East Osborn Road
      Suite 105
      Phoenix, Arizona 85014
      Phone: 602-277-7000
      Fax: 602-277-8663
    Contact Us

    Please fill out the form below and someone from John Even's office will contact you

    Quick Contact Form