Six Wise Ways to Give at Year End
It’s the combined generosity of friends like you during the holiday season that allows us to meet our budget goals and carry out this important mission. As you consider making year-end gifts to the Beacon Hill Foundation, remember these giving options to maximize your impact and potentially reduce your taxes.
Give cash – Should you choose to give cash, be sure your gift is postmarked on or before December 31. If you itemize tax deductions, you can deduct cash gifts up to 50 percent of your adjusted gross income.
Donate appreciated assets – If you’ve owned stocks, bonds or mutual funds for more than a year, and they’ve increased in value, do NOT sell them to give cash, or you could owe capital gains tax. Instead, gift those appreciated assets directly. You will bypass that tax and receive a deduction for the assets’ fair market value, up to 30 percent of your adjusted gross income.
Make a gift of real estate – By giving real estate to charity, you’ll bypass the capital gains tax and receive a fair market value tax deduction. You don’t even need to sign over an entire piece of property; you may donate a portion and receive proportionate benefits.
Give other non-cash property – Assets such as machinery, vehicles, life insurance, or even commodities such as grain can make year-end gifts, perhaps providing tax advantages, depending on your situation.
Give from your IRA – If you are at least 70½ years young, instead of depositing the required minimum distribution (RMD) from your individual retirement account into your bank account, have it sent to your favorite charity — up to $100,000 per year tax-free. This qualified charitable distribution will count toward your RMD and won’t be included in your adjusted gross income.
Check out your employer’s Matching Gift program – If you are still working, some employers will match your charitable gift, in some cases doubling or even tripling the amount the Beacon Hill Foundation received on your behalf.
To discuss which giving options might be best for you, contact Andi Allen, Foundation Director, at 616-608-8285 or firstname.lastname@example.org