Why Give

Give today. Transform tomorrow.

Gifts to the Verbum Dei Jesuit High School have an immediate and purposeful impact in providing a quality, Jesuit Catholic college and career preparatory education to young men who live in South Los Angeles with limited educational opportunities.

Understanding tax strategies for charitable giving can guide your decisions on how much to give, which assets to donate, and the best timing for your contributions, enabling you to maximize your support for Verbum Dei Jesuit while optimizing your tax benefits.

Tax Strategies for Maximizing Charitable Contributions

While many people are aware they can deduct charitable donations on their income taxes, understanding strategic tax planning can amplify the impact of your giving. Here are a few approaches to consider:

1. Donating Appreciated Assets
Giving long-term appreciated assets, such as stocks, bonds, or real estate, to Verbum Dei Jesuit can provide significant tax advantages. You may avoid capital gains taxes on the appreciation and claim a tax deduction for the full fair-market value of the asset, up to 30% of your adjusted gross income.

2. Bunching Contributions
With higher standard deduction thresholds introduced in recent tax reforms, itemizing deductions may not always be feasible annually. By "bunching" multiple years of charitable donations into a single year, you may exceed the standard deduction and qualify for greater tax savings. In alternate years, you can claim the standard deduction, optimizing your overall tax benefit.

3. Estate Planning for Charitable Giving
Naming Verbum Dei Jesuit as a beneficiary in your will, trust, retirement plan, or life insurance policy ensures continued support for our mission while potentially reducing or eliminating estate tax burdens for your heirs.

4. Utilizing Donor-Advised Funds
A donor-advised fund allows you to make contributions to an account dedicated to charitable giving, with the added benefit of an immediate tax deduction. Over time, you can direct grants to Verbum Dei Jesuit while investing the funds for potential tax-free growth. Donor-advised funds often provide more flexibility and tax advantages than private foundations, especially for income and capital gains tax planning.

How Charitable Giving Can Defer or Reduce Taxes

Charitable contributions can effectively lower federal income, capital gains, and estate taxes when paired with smart tax planning.

1. Income Tax Reduction
Donations to Verbum Dei Jesuit allows you to itemize deductions and lower your taxable income. Strategies like "bunching" contributions into a single year or using donor-advised funds can maximize deductions, especially during high-income years. Combining gifts of appreciated assets with cash donations may also enhance tax benefits.

2. Capital Gains Tax Savings
Donating long-term appreciated assets, such as stocks or real estate, can help avoid capital gains taxes of up to 20%. By gifting the fair market value of these assets to charity, you reduce your taxable income and sidestep significant tax liabilities.

3. Estate Tax Benefits
Properly structured charitable gifts can remove assets from your taxable estate, reducing or even eliminating federal estate taxes. Options like charitable trusts or directing IRAs to Verbum Dei Jesuit while leaving appreciated securities to heirs can maximize tax efficiency for your beneficiaries.

Consulting a tax professional is recommended to navigate these complex strategies and maximize their benefits.