The final months of the year are traditionally considered the season of giving. In addition to the gifts we give to the important people in our lives, this season of generosity is also the most popular time to support the causes we love. When you support our organization this year, not only will others benefit, but so will you.
Explore Your Options
Although there may still be time to make several different types of charitable gifts, based on your unique situation and tax considerations, some gift types may be more practical than others. Following are several popular options.
1. Make an immediate impact.
Cash is an easy way to give each year. You can receive an income tax charitable deduction for the full value of the gift. You should obtain a receipt for gifts of $250 or more. If you write a check for less than $250, a copy of the check will suffice as a record of the gift.
2. Save taxes on appreciated stock.
When you donate stocks to our organization worth more than what you originally paid for them, you can claim deductions for their full fair market value and eliminate any long-term capital gains tax on the appreciation.
3. Real Estate
Like securities, if you try to sell appreciated property, you will be subject to capital gains tax on the appreciation. By donating the property to charity, you can enjoy tax savings and relieve yourself from the hassles of selling or maintaining it.
4. Charitable Life Income Vehicles
Gifts such as a charitable remainder trust or a charitable gift annuity provide you, or a beneficiary of your choice, with payments for life or a period of years, and our organization with support after that.
Suppose you use appreciated securities to fund the gift. In that case, you will be entitled to an income tax deduction based, in part, on the charitable portion of the securities’ total value, in addition to eliminating up-front capital gains tax.
5. Life Insurance
An old policy you no longer need can make a significant impact on our work. To qualify as a deductible gift, our organization must become the policy owner. For most insurance policies, your tax deduction is usually the cost basis or the policy’s fair market value—whichever is less.
It is more common for policies to require premiums still to be paid. When you donate these, the future premiums are tax-deductible as you pay them.
6. Repurpose particular tangible personal property
Perhaps you have tangible items, such as artwork or other collectibles, that you would like to give to our organization to support our mission. Please get in touch with us to help you determine the charitable deductions for your property gift.