YEAR END GIFTING STRATEGIES

The end of the year is a time when charitably inclined individuals think about how they can help to make the dreams of the organizations they support come true.  It’s also a time when tax-wise donors understand that year-end giving benefits them as well.  If you have assets that have appreciated with a low cost basis you may be wondering how to best use those appreciated assets for tax planning and charitable purposes.  By donating before the end of the year your charitable deduction may reduce your taxes this year. This should give you some peace of mind knowing you don’t have to concern yourself with the stock market’s fluctuations. Two year-end techniques are discussed below.

Donor Advised Funds  
By donating appreciated assets to RJF you can avoid paying capital gains tax and secure a tax deduction.  It’s especially well suited for donors who have yet to decide what charities they want to benefit.  Once the appreciated assets are given to RJF and placed in your donor advised fund account, you can take as much time as you need to decide where to direct their gift. You can start your fund with cash or appreciated stock and take three years to fund to the $5,000 minimum level. Donor advised funds are great vehicles to plan your philanthropy including gifts for your temple, the Federation and any other qualified non-profit that you support.

IRA Rollover
Have you been looking for a way to make a major gift to create your legacy without dipping into your checking or savings account?  If you are over 70 ½, you can transfer up to $100,000 from your IRA to a Richmond Jewish Foundation endowment before the end of December 2011 without paying any federal income tax.  And this gift may be made over and above the other charitable gifts you already make. Your gift can be made simply by notifying your IRA plan custodian of your intent to make a current transfer to us or another charitable organization.

Bequests
If you are not ready to donate your stock or real estate today, you can still enjoy your property during your lifetime while making a gift to us through your will or trust. A bequest of your property will provide your estate with an estate tax charitable deduction, which means the money saved can go to your loved ones. A simple sentence or two in your will can ensure that your family is cared for while also supporting the charities of your choice after your lifetime.

For more information on how to create your legacy using an IRA rollover gift in 2011 or a bequest or how to create your own donor advised fund, please contact us.