Maximize your tax situation with an immediate deduction while benefiting charity by considering the following tips:
- Carefully select the best property to give.
- Cash is convenient and provides you an income tax deduction when itemized on your income tax return.
- Donate appreciated stock held for more than one year and derive an additional tax benefit:
avoidance of capital gain. Consider choosing appreciated stock with the greatest capital gain
to take maximum advantage of this unique tax benefit.
- Give some, keep some. If you are not prepared to donate all of your shares of stock in a
particular company, donate the amount of shares that will offset or reduce the gain when you
sell the remainder of shares and keep the proceeds.
- Sell stock that has lost value and donate the proceeds. You can deduct the loss in
value (cost basis less current value) and derive an income tax charitable
deduction for the current market value.
- Donate disposable income generated from an IRA account and offset income taxes
with a charitable deduction. Be careful here: premature withdrawals, or withdrawals
and direct transfers that exceed the minimum distribution amount may incur penalties.
- Donate an insurance policy that you no longer find useful, and receive a charitable
deduction for the cash value of the policy.
- Use your credit card to make the gift. Get the deduction now,
and pay the bill no earlier than a month from the date of the gift,
or at your convenience according to the provisions of your credit-card company.
If your card provides frequent-flyer miles, you get all of the tax advantages,
plus adding benefit to your travel plans! (Watch out for finance charges on the
amount donated, which could offset the charitable tax deduction.)
- Match your gift with your employer's contribution.
Many companies have matching-gift programs for charitable donations by
simply enclosing the company form along with your donation, and the JCEF will take care of the rest.
- Set up a philanthropic fund or supporting foundation.
- The above gifts of $5,000 or more can establish a
donor-advised Philanthropic Fund in any name that you choose.
A Philanthropic Fund is an efficient and easy way to simplify charitable giving and record keeping with
flexibility in the timing and recipients of the grants.
- For significant philanthropy, consider a
Supporting Foundation, which qualifies as a public charity with all of the attendant tax benefits,
personal involvement in grant making and investment strategy, and without the
burdensome taxes and paper work of private foundation.
- Establish a life-income gift
For more information contact:
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