Year-end giving is as easy as (1) making a charitable gift, and (2) saving taxes. We’d like to make it even easier with these simple suggestions on some of the best ways to save – and give.
The tax laws intentionally encourage charitable giving. Because of the income tax charitable deduction, individuals who make their gifts by December 31 and itemize can significantly reduce their income taxes for 2017. Giving is much more than tax brackets and charitable deductions. Philanthropy provides the meaningful difference in what we can do.
Gifts of Cash
There is no easier way to garner a charitable deduction for 2017 – and support PCHS at the same time – than by simply writing a check or donating on line! Make sure your envelope is postmarked by December 31; if it is, your gift will qualify as a 2017 gift even if it is not received by us until the first week of 2018.
Gifts of Appreciated Securities
Advantages of gifting appreciated stock and bonds are:
Gifts of Real Estate
If you have owned your home, vacation home, acreage, or a farm for many years, a charitable gift of real estate can be especially tax-advantageous.
The property may have so appreciated in value over the years that its sales would results in a sizeable capital gains tax. If given to PCHS instead, you avoid the tax and, at the same time, realize a charitable deduction for the full fair market value of the real estate.
Gifts of Life Insurance
If you own a life insurance policy that is no longer needed, consider it as the perfect vehicle for a 2017 year-end charitable gift.
To receive a charitable deduction, name us as both owner and beneficiary of the policy. If the policy has a cash value, you can take a charitable deduction approximately equal to the cash value at the time of the gift. In addition, if annual premiums are still to be made and you continue to pay them, those premiums will become tax deductible each year. Obviously, this gift is made when the owner no longer needs life insurance protection. Just check with your life insurance agent for detail on which forms to complete.
IRA Charitable Rollover
You can give up to $100,000 from your IRA directly to a qualified charity such as PCHS without having to pay income tax on the money. If you are 70-1/2 years old or older, you can take advantage of a simple way to benefit our school and receive tax benefits in return.
Life Income Gifts
A life income gift allows you to transfer assets now, and yet continue to receive income from the cash, stock, or other property contributed. A life income gift can allow you to: (1) increase your income for life; (2) receive a generous charitable contribution deduction in 2017, and (3) if you contribute stock, avoid any capital gains tax on the appreciation.
A life income gift is often made through a trust arrangement called a “unitrust” or an “annuity trust.” With a unitrust, you and/or your spouse (or another beneficiary) receive a fixed amount from the trust each year. This amount is agreed upon when you create the trust each year; it stays constant, no matter what happens with the stock market or interest rates.
This may also be a good time to consider long-term tax savings. The federal estate tax can still take approximately 50% of one’s estate at the time of death. It is important to do some advance planning with your attorney and other professional advisors.It is important to check with your accountant, tax attorney, or other tax advisor for additional information on how these general rules apply to your situation.
Double your Dollars with Corporate Matching Gift Programs!
Many employers match gifts made by active and sometimes retire employees as well as directors. Securing a matching gift is an easy way to double or even triple your gift to PCHS. Please contact your human resources department to see if your company participates or just go to the Double the Donation under Support Pali.
For any questions regarding these alternative donations options, please contact Michael Rawson, Director of Development, at 310-230-7272 or email@example.com.