WHAT TO DO IN ORDER TO ENSURE YOU CAN CLAIM A CHARITABLE DEDUCTION FOR 2017:
For donations of cash (including checks), your donation must be either postmarked or personally delivered to the not-for-profit organization on or before Dec. 31.
For donations of stock, your stock must be transferred out of your account on or before Dec. 31.
For donations via credit card, your credit card donation must be processed on or before Dec. 31.
DONATING LONG-TERM APPRECIATED SECURITIES CAN PROVIDE ADDITIONAL TAX BENEFITS
When you donate long-term appreciated securities, you can claim a charitable income tax deduction for the fair market value of the securities on the date of transfer, no matter what you originally paid for them.
You pay no capital gains tax on the transfer. For example, if the securities originally cost $2,000 and now have a fair market value of $10,000, you do not pay tax on the $8,000 gain and you may claim a charitable income tax deduction for $10,000.
HOW DO GIFTS OF CASH AND SECURITIES COMPARE?
Gift of $10,000 cash/ Gift of $10,000 stock Initial cost basis of securities/ appreciation | not applicable | $2,000/$8,000
Capital Gains tax saved or paid, assuming 20% rate | not applicable | $1,600
Ordinary income tax savings (35% tax bracket X value of gift) | $3,500 | $3,500
Net tax savings | $3,500 | $5,100
*Please note: A different tax rate may apply to you and, accordingly, the charitable benefit you receive may vary. **Gifts of securities may be deductible up to 30% of your adjusted gross income, however, excess deductible amounts may be carried forward for five years. Please consult with your professional advisor to determine your specific situation.
For more information, contact Lisa Stanger, Jewish Foundation Executive Director, email@example.com, 203-387-2424, x.382. or visit us at www.newhavenjewishfoundation.org or www.jewishlegacynewhaven.org.