By giving or leaving your bonds to the Pulmonary Fibrosis Foundation, you may be able to reduce, or even avoid, income taxes. Savings bonds are normally taxed when they’re cashed in, reissued to another person, or reach their final maturity. Although savings bonds cannot be directly donated to a charitable organization during your lifetime, there are three easy ways to use your bonds to support the pulmonary fibrosis community:
1. Redeem your savings bonds and use the cash equivalent to make a gift supporting the PFF. By redeeming your savings bonds, you will trigger a tax liability to you on the interest income, but if you itemize, you will receive the benefit of a charitable tax deduction to help offset the additional taxable income.