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Posts Tagged ‘Donation’

Give To Your Favorite Cause Before Year End – Some Useful Tips

December 4, 2013 Leave a comment
Gifts

Gifts (Photo credit: Guudmorning!)

As the end of 2013 approaches, donors are likely thinking about their
favorite charity or ministry and what they may be able to do in the way
of support.

I know I am.  I am always encouraged when I think
about the important mission of these organizations and how lives are
being changed as a result of what they are doing.  After all, that is
why we give.  We give because we are taking part in something bigger
than we are.  We give because we believe in the mission of these great
organizations.  We give because we believe in the power of giving to
transform lives, maybe even our own.

So, after dwelling on the good stuff it is then time to consider how to give.  Should I give cash?  Should I donate stock?  Should I do something else?

Having served in some nonprofits, I know we were always thankful for unrestricted
gifts in whatever form they came to us.  This might be your first
consideration and I would recommend making your gifts unrestricted so
that the organization can put it to use in the best way possible.

Next, if your cash position is good you will certainly want to share the wealth.   Here are a few reminders about cash gifts–

  • Make sure you are donating to a qualified organization if you want a tax deduction.
  • Make sure to get an official receipt for your gift, especially if it is over $250.
  • For tax purposes, cash donations generally have a deductible limit of 50% of your AGI.
  • You must make your gift before the end of the year or make sure it is postmarked December 31 if mailed.

If you want to make stock gifts at the end of 2012, this is a positive
time to do so.  The stock market has performed well over the past couple
of years and you may have stocks that you feel have appreciated
significantly.  Also, the fiscal cliff that has been the focus of the
post-election likely will see income tax rates and capital gains tax
rates rise after 2012.  With this in thought, making a stock gift seems
like the right and prudent thing to do.  Here are some reminders about
making stock gifts–

  • You can take a tax deduction for the fair market value of the stock at the time of the gift.
  • For tax purposes, stock gifts and other capital gain property gifts are limited to 30% of your AGI.
  • Make sure to give the stock directly to the charity (don’t sell it yourself and then give the cash).

Of course, make sure you consult your professional advisor as you plan your year-end giving.

No matter what your situation, you have the ability to make a difference
through your giving to nonprofits.  Keep that in mind as you move
forward into this holiday season.

Year End Tax Planning – Charitable Contributions

November 17, 2013 Leave a comment

 

Property, as well as money, can be donated to a charity. You can generally take a deduction for the fair market value of the property; however, for certain property, the deduction is limited to your cost basis. While you can also donate your services to charity, you may not deduct the value of these services. You may also be able to deduct charity-related travel expenses and some out-of-pocket expenses, however.

 

Keep in mind that a written record of charitable contribution is required in order to qualify for a deduction. A donor may not claim a deduction for any contribution of cash, a check or other monetary gift unless the donor maintains a record of the contribution in the form of either a bank record (such as a cancelled check) or written communication from the charity (such as a receipt or a letter) showing the name of the charity, the date of the contribution, and the amount of the contribution.

 

Tip: Contributions of appreciated property (i.e. stock) provide an additional benefit because you avoid paying capital gains on any profit.

Thoughts on Giving to Your Favorite Nonprofit Before the End of 2012

November 27, 2012 Leave a comment
Gifts

Gifts (Photo credit: Guudmorning!)

As the end of 2012 approaches, donors are likely thinking about their favorite charity or ministry and what they may be able to do in the way of support.

I know I am.  I am always encouraged when I think about the important mission of these organizations and how lives are being changed as a result of what they are doing.  After all, that is why we give.  We give because we are taking part in something bigger than we are.  We give because we believe in the mission of these great organizations.  We give because we believe in the power of giving to transform lives, maybe even our own.

So, after dwelling on the good stuff it is then time to consider how to give.  Should I give cash?  Should I donate stock?  Should I do something else?

Having served in some nonprofits, I know we were always thankful for unrestricted gifts in whatever form they came to us.  This might be your first consideration and I would recommend making your gifts unrestricted so that the organization can put it to use in the best way possible.

Next, if your cash position is good you will certainly want to share the wealth.   Here are a few reminders about cash gifts–

  • Make sure you are donating to a qualified organization if you want a tax deduction.
  • Make sure to get an official receipt for your gift, especially if it is over $250.
  • For tax purposes, cash donations generally have a deductible limit of 50% of your AGI.
  • You must make your gift before the end of the year or make sure it is postmarked December 31 if mailed.

If you want to make stock gifts at the end of 2012, this is a positive time to do so.  The stock market has performed well over the past couple of years and you may have stocks that you feel have appreciated significantly.  Also, the fiscal cliff that has been the focus of the post-election likely will see income tax rates and capital gains tax rates rise after 2012.  With this in thought, making a stock gift seems like the right and prudent thing to do.  Here are some reminders about making stock gifts–

  • You can take a tax deduction for the fair market value of the stock at the time of the gift.
  • For tax purposes, stock gifts and other capital gain property gifts are limited to 30% of your AGI.
  • Make sure to give the stock directly to the charity (don’t sell it yourself and then give the cash).

Of course, make sure you consult your professional advisor as you plan your year-end giving.

No matter what your situation, you have the ability to make a difference through your giving to nonprofits.  Keep that in mind as you move forward into this holiday season.

News for Nonprofits

June 1, 2012 1 comment
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