Your Guide to Year-End Giving

Thursday, December 17, 2015

 
Your Guide to Year-End Giving
 
How It Works 
 
If you itemize deductions, a gift is deductible in the year you make it. Generally, the effect of the deduction is that the higher your income tax bracket, the more you will save in taxes. Many states also allow an income tax deduction for charitable gifts, so the total tax savings are often higher than those generated by the federal income tax deduction alone. If you have had to take the standard deduction in past years, giving more may increase your deductions above the standard. This qualifies you for a greater tax benefit.
 
What Should You Give?
 
Cash: Nothing is as simple and direct as giving cash. You can make an unrestricted donation, and we will use the gift to meet our greatest current need. Or you may designate a gift for a specific purpose. A gift of cash may be deductible up to 50 percent of your adjusted gross income, and gifts in excess of 50 percent may be carried over as deductions into the next five years.
 
Securities: Stocks or other investments that have grown in value and that you have owned longer than one year can become a substantial gift with a low net cost to you. You receive a charitable deduction for the donation, which is based on the stocks' fair market value on the date of the gift. And, there is a bonus—you eliminate all federal capital gains tax that would otherwise be owed on a sale of the assets. To transfer a gift of securities to the IRSC Foundation, click here
 

IRA Retirement Plans: Many professional advisors suggest using retirement funds as a source for charitable giving.  Otherwise, retirement account withdrawals could be taxable to you and eventually to your heirs if left to them. If you are over the age of 70 ½, you may be able to give directly from your IRA, resulting in additional tax benefits.

Life Insurance:  You may own a life insurance policy that is no longer needed for its original purpose. This policy may be used to make a gift that can provide income tax savings.

Real Estate: Real estate—developed or undeveloped—can potentially be a charitable gift. If you have owned your home or other real estate for a long time, it likely has significantly increased in value. Donate the property outright, place it in trust or retain the use of it for life. All of these methods will enable you to enjoy financial benefits while supporting our work.

Effectively Timing Your Gift If you are issuing a check to a charitable organization, the effective date of your contribution is the date it is hand-delivered or mailed. Stock that is held in electronic form can be transferred through your broker to an account in the IRSC Foundation. The value and date of the gift are determined by the date of the transfer, which is generally the date the securities are received in our account. The actual date of a gift of real estate is the date you deliver the signed deed.
 
For more information, please feel free to contact us. We can help you plan and implement a year-end charitable gift that takes advantage of valuable tax benefits and reflects your generous spirit.
 
Indian River State College Foundation 
Ann Decker, Executive Director 
Phone: 772-462-4786 
Email: adecker@irsc.edu 
3209 Virginia Ave Fort Pierce, FL 34981 
Website: http://www.irsc.edu