Direct Donation via Check, Credit Card, or Cash

• • • • These gifts are recognized as charitable donations and can be taken as itemized deductions on your tax return. The tax benefits of cash donations have become limited, since a benefit is only realiz

      • ed once your total deductions exceed the new higher standard deduction threshold.

      • This is the choice for many lake residents, who want to annually support the HLA. Donors of any amount automatically have voting privileges at all meetings of the HLA in that calendar year.

      • Here's the LINK to start this process

From your Donor Advised Fund

• • • Another popular option is to open a Donor-Advised Fund (DAF), which is a special investment account for donations. You can receive a tax deduction during the year you make contributions to the DAF, the money can grow tax-free within the account, and you can then distribute the money to charities over time. 

    • A DAF could be a good match if you’re using the bunching approach but prefer to spread out the donations. Maybe you want to evaluate how effectively a new charity uses the money and become a sustaining supporter rather than handing over a lump sum. 

    • A DAF can also be helpful if you receive a windfall gain, perhaps from selling a business or a large severance package. You may want to take a large charitable tax deduction during the high-income year, but aren’t prepared to give away all the money yet. 

    • Additionally, if you’re looking for ways to pass on the importance of charitable giving, a DAF can support this goal. You can establish and fund the DAF while planning your estate, and know that you’ll pass on money that’s earmarked for charities like HLA. 

    • Brokers like Charles Schwab and Fidelity (and most others) have well-established, robust Donor Advised Funds.

Qualified Charitable Distributions

• • • Did you know that if you are 70 ½ years old you can make a donation to a qualified non profit like HLA through a distribution from your Individual Retirement Account (IRA), and avoid paying taxes on the amount given?

    • This type of gifting is called a Qualified Charitable Deduction (QCD) and is

      • transferred directly from your IRA custodian and is made payable to HLA.

    • The amount of the QCD is excluded from taxable income, unlike regular withdrawals. You do not need to itemize to get the tax benefit of the QCD. The charity must be a 501(c)(3), with a Tax ID (EIN) number.

    • QCDs cannot be given to private foundations or Donor Advised Funds.

    • As always, you should consult a tax professional to be sure that a QCD works for you.

    • HLA is grateful to its loyal donors who regularly direct gifts from their IRA to support the Association.

    • If you'd like to know more about how you can support HLA through a QCD, contact : 

      • Tom VerLee, Membership & Development Committee. 

Proceeds from an Event (e.g., Yard Sale)

• • • In 2021 Highland Lake resident Mimi Gray had a big yard sale.  Six HLA members worked with Mimi to price and lay out the items for the sale, and then to staff the event. It included a lot of smaller items, but a pedal boat and water trampoline were the biggest items. The event raised over $2,700. 

    • Mimi generously chose to give 100% of the proceeds to the HLA Endowment Fund, in honor to, and in memory of her late husband Gordon. 

Giving Appreciated Gifts instead of Cash

• • • Donating long-term appreciated assets (meaning you’ve held the investment for at least a year) can be an especially efficient way to support a good cause. These can include stocks, bonds, mutual funds, and other types of investment products. 

    • It’s a good strategy because you can deduct the investment’s current value, but you don’t need to sell it first and therefore avoid paying taxes on your gains. Additionally, the HLA won’t pay taxes on the investment’s gains—making this an easy win-win. 

    • A donation can be made by transferring ownership of stock to HLA's brokerage account, rather than selling the stock and donating the proceeds. The donor avoids taxation on the gains and the charity can sell the stock without a tax liability. The market value of the donated shares is tax deductible. This technique is only beneficial once your taxable income exceeds the threshold of $77,400 married filing jointly ($38,700 for single filers), since below this level capital gains are not taxed.

Make HLA a Beneficiary in your Will or Life Insurance

• • • Life insurance can be an effective and convenient asset to give to a charity of your choice.

      • There are various methods for making life insurance donations and each has unique advantages.

      • Charitable giving riders pay a specific percentage of the policy's face value to a qualified charity of the policyholder's choice.

      • Gifting a life insurance policy can reduce the donor's taxable estate.

      • Naming the charity of your choice as the beneficiary of your life insurance policy is the simplest way to provide a charity with the death benefit proceeds from a policy.

    • Many people choose to make a monetary donation to a charity in their Will. 

      • There are other options available if you wish to leave a charitable donation after your passing.

      • Some nonprofit organizations like HLA will accept other assets as gifts, including:

        1. Real estate, such as land or residential property

        2. Personal property, including vehicles, antiques, or jewelry

    • If you decide to make HLA the beneficiary of a policy or estate, please let us know, so that we may acknowledge your generosity appropriately.

Ask Your Road Association to Join HLA

• Why It Matters:

  • HLA has obtained over $80K in state and local grants to support Road and Property owner erosion mitigation projects in the past 5 years.

• How It Works:

• Road Associations that contribute on behalf of 100% of their membership get a discount on the suggested minimum donation of $35.

• SIX Road Associations  currently make an Annual Donation to HLA.