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GIVING AT YEAR END
With the holiday season approaching, thoughts turn to giving. A majority of charitable gifts are made at this time of year.
You can use a variety of assets to make year-end gifts to your favorite charitable organizations, including The ALS Association, Minnesota Chapter. Your gifts might even be used to generate an income stream for you. And if you itemize your deductions, charitable gifts are eligible for an income tax deduction as long as you complete the gift by December 31.
Here are some tips to remember as you consider your year-end giving:
Gifts of cash
Gifts made with cash which also includes checks and credit cards are the most common type of charitable gift. Your gift is considered complete on the day that your gift is mailed (or the date your credit card is processed if using a credit card), not the day the gift is received by the charity. As long as your gift is mailed by December 31, your gift will qualify for a tax deduction (up to 50% of your adjusted gross income). The December 31 mail rule only applies to the US Postal Service, not to gifts sent via a private courier such as FedEx or UPS.
Gifts of stock
Securities, the second most common year-end gift can make an attractive gift asset. In order to preserve tax advantages, it is critical that transfer the securities to us rather than the proceeds from a sale. Most securities are held in a brokerage account. Transferring shares to The ALS Association, Minnesota Chapter is a simple matter. Call us to obtain our transfer information. Your gift is complete once the shares are received in our account.
Appreciated stock. When you give publicly traded stocks held long term (more than one year) to a charitable organization such as The ALS Association, you avoid all capital gains taxes. In addition, you may take the full fair market value of the stock gift as a charitable deduction on your income taxes up to 30 percent of your adjusted gross income, carrying any excess deduction forward for up to five additional years. We must receive your shares by December 31.
Depreciated stock. If you have stock losses, sell the stock to realize the loss and take the allowable deduction for tax purposes. Then generate a charitable deduction by donating the cash proceeds from the sale to The ALS Association. Check with your tax advisor for more information.
Gifts from your IRA
Congress has extended the IRA “rollover” law. If you have an IRA and are at least 70 ? years in age, you can make a direct transfer from your IRA to The ALS Association, Minnesota Chapter without including the transfer in your gross income. You can transfer up to $100,000 each year from your IRA. Your transfer counts toward your minimum required distribution.
Gifts that pay an income
You can use cash, stock, real estate, and other assets to establish a gift arrangement that pays you an income. There are several different arrangements available. Call our office if you’re interested in learning more.
With a little planning, you can make the most of the year-end giving season. Call Sue Spalding at 612-672-0484 or email her sue@alsmn.org for help.
Other News:
Check out the Minnesota Chapter 2009 Annual Report. >View entire report.
In 2008 The Minnesota Chapter won The Technology Award from the Minnesota State Council on Disability. >Read article
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