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Tax-Advantaged Giving

Every gift to Wells of Life helps save lives through clean, safe water in rural Uganda. By choosing tax-smart ways to give, you may reduce taxes and help reach more people, faster.

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Wells of Life is a 501(c)(3) public charity. (EIN: 45-1496631) This page provides general information—not tax advice. Please consult your tax advisor.

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1) Qualified Charitable Distributions (QCDs) from IRAs

If you’re 70½ or older, you can direct funds from your traditional or Roth IRA (and most inactive SEP/SIMPLE IRAs) straight to Wells of Life. A QCD can count toward your Required Minimum Distribution (RMD) (if applicable) and is excluded from taxable income—a powerful benefit even if you don’t itemize. (Kiplinger)

Key 2025 rules:

• Annual limit (indexed for inflation): Up to $108,000 per person in 2025. Spouses can each give up to their own limit from their respective IRAs. (IRS)

• One-time “split-interest” option (SECURE 2.0): Up to $54,000 in 2025 of your QCD can fund a Charitable Gift Annuity (CGA) or certain charitable remainder trusts—once in your lifetime. (Fidelity Charitable)

• Direct transfer required: Your IRA custodian must send the funds directly to Wells of Life (or provide an IRA checkbook where the check is made payable to Wells of Life). QCDs cannot go to DAFs, private foundations, or supporting orgs. You won’t also claim a charitable deduction for the QCD amount. (Kiplinger)

How to make a QCD (simple steps for donors):

1. Call your IRA custodian and request a “Qualified Charitable Distribution” to Wells of Life (add legal name, EIN, and mailing address).

2. Ask the custodian to include your name and contact information on the check or advice so we can properly receipt your gift.

3. We’ll send a contemporaneous acknowledgment letter for your records.

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2) Gifts of Appreciated Securities (Stock, ETFs, Mutual Funds)

Donating long-term appreciated assets (held >1 year) can be more tax-efficient than giving cash:

• You may avoid capital gains tax on the appreciation;

• You may claim a charitable deduction for fair market value;

• You may be able to increase your giving at a lower after-tax cost. (IRS)

Deduction limits (most donors):

• For gifts of long-term capital-gain property to public charities, the deduction is generally limited to 30% of AGI, with 5-year carryforward of any excess. (Cash gifts are typically limited to 60% of AGI; some 20%/50% limits can apply in special cases.) (IRS)

How to give stock:

1. Ask us for DTC transfer instructions (broker, account name/number).

2. Instruct your broker to transfer shares, not proceeds.

3. Save our receipt (we’ll value publicly traded shares at average of high/low on the date received into our account, per IRS rules).

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3) Donor-Advised Funds (DAFs)

If you already use a DAF, you can recommend a grant to Wells of Life—perfect for larger gifts or year-end timing flexibility.

Important notes:

• DAF grants can’t provide you with any more-than-incidental benefits (e.g., event tickets, memberships with benefits, auction items). Use personal funds for those. (NPTrust)

• Regarding fulfilling a personal pledge: IRS guidance indicates DAF sponsors may allow grants that satisfy a pledge without treating it as a prohibited benefit, provided certain conditions are met (e.g., no personal benefit, proper acknowledgement). Check your sponsor’s policy. (IRS)

How to give from your DAF:

• Log in to your DAF (Fidelity Charitable, Schwab Charitable, Vanguard Charitable, a community foundation, etc.) and recommend a grant to Wells of Life (include EIN).

• Select “where needed most” or designate a program (e.g., restoration wells, HVP).

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4) Corporate Matching, Payroll & Business Gifts

• Many employers match employee donations or volunteer hours—sometimes 1:1 or 2:1.

• Businesses can deduct charitable contributions (subject to corporate rules and limits). Ask your HR/Benefits team for your company’s process, or we can help you check.

• We can provide invoices/receipts aligned to cause-marketing or sponsorships (note: sponsorships with benefits may be partly non-deductible).

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5) Legacy & Beneficiary Designations

• Name Wells of Life as a beneficiary of your IRA, 401(k), 403(b), life insurance policy, or DAF. Retirement assets can be highly tax-efficient to leave to charity, often avoiding income tax to heirs. (Confirm with your advisor.)

• Simple form—no attorney required for beneficiary updates. For wills or trusts, consult your estate attorney.