Tips for Year-End Charitable Giving

December 16, 2013

As this year draws to a close, many people are considering making year-end gifts to charity. We've put together a few tips to help you make the most of your giving and take full advantage of the available tax benefits. If you'd like to speak with us about starting a fund before the close of this year please contact Heather Sherwin, VP for Development, at 803.254.5601 x331 or heather@yourfoundation.org.

Please consult with your tax advisor to ensure your decisions are appropriate for your unique tax situation.

  • Make your gifts by December 31, 2013 to take a deduction on your 2013 tax return. By making a gift to your fund by December 31, you will receive a deduction immediately but will be able to take your time choosing the charities who will ultimately receive grants.
  • Ensure that your gifts are made to qualified organizations in order to take a deduction. Gifts to your fund at the Community Foundation are eligible for the maximum deduction allowed by law. When you make recommendations to fund your favorite charities, the Foundation’s qualified grantmaking staff will perform all necessary due diligence.
  • Save your gift documentation to support your charitable contribution deductions. This is easy by making a gift to your fund at the Foundation. The Foundation staff processes your grant requests and can work directly with your tax preparer to provide the information needed to support your charitable deductions.
  • Consider giving appreciated long-term securities. With the stock market at all all-time high, publicly traded stock and other securities you’ve held for more than one year are one of the best charitable gifts. Why? Because you can deduct the fair market value and avoid the capital gains tax you would pay if you sold the stock.
  • Consider making a gift from your IRA. The IRA Charitable Rollover provision permits tax-free charitable distributions of up to $100,000 per taxpayer, per tax year from an IRA held by someone age 70½ or older. This legislation is set to expire on December 31, 2013, and not likely to be extended by Congress as in past years.
  • Know your charitable deduction limit. You can deduct up to 50% of your adjusted gross income. However, you can claim the excess donation amount on your next year's tax return and carryover for five years to claim the full charitable gift.
  • If you would like to make a gift to support the Community Foundation's work in the community, you can donate online here or send us a check.

 

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