Many options for year-end charitable giving

Here are a few interesting tidbits to consider:

• Nearly one-third of all giving occurs in December.

• 12% takes places within the last three days of the year.

• Two-thirds of those making year-end gifts do so without researching where their gifts go.

What kind of giving meets your goals

Around this time each year, so many of us look to combine our desire to do good with our desire to save wherever we can. Surprisingly, it’s quite easy because tzedakah comes in many forms, and the Jewish Federation Foundation (JFF) offers a range of options allowing you to make informed charitable contributions. From donor-advised funds to bequests and outright gifts, you can find useful information on our new Jewish legacy website: jewishallianceri.giftplans.org to help guide the process. Our philanthropy team is also available to support you as you determine end-of-year gifts and donations. It’s really that simple.

Every day is a good day to consider the right types of giving for you

Consider establishing a donor-advised fund.

With charities that have donor-advised fund (DAF) programs, such as the JFF, you can make irrevocable contributions to the charity, which then establishes a DAF on your behalf. Establishing a donor-advised fund can be a particularly useful strategy at the end of the year because it allows you to make a gift and take the tax deduction immediately. You can then take your time when deciding where the dollars will go. This can be a great way to offset a year with unexpectedly high earnings or address the tax implications of year-end bonuses.

Donate complex assets.

Donors may also contribute complex assets such as private company stock, real estate or other personal property directly to a charitable organization.

These types of assets often have a relatively low cost basis. In cases where these assets have been held for at least a year, the outright sale of the asset would result in a large capital gains tax. If, however, the asset is donated directly to a charity and the charity then sells the asset, the original owner is often able to eliminate capital gains taxes while potentially receiving a charitable donation deduction as well.

Give the gift of stock.

While giving in the form of cash or check is the most common way to give charitably, it  is not generally the most tax-efficient. Contributing stocks, bonds or mutual funds that have appreciated over time has become increasingly popular in recent years, and for reasons. Why?

Most publicly traded securities with unrealized long-term gains (meaning they were purchased over a year ago and have increased in value) may be donated to a public charity, and the donor may claim the fair market value as an itemized deduction on the federal tax return – up to 30% of the donor’s adjusted gross income (should you donate more than you can deduct in one year, there is a 5-year carry-forward available).

Other types of securities such as restricted or privately traded securities and donations to non-public charities may also be deductible though additional requirements and limitations may apply. No capital gains taxes are owed because the securities are donated, not sold. The greater the appreciation, the bigger your tax savings can be.

To explore your Jewish Alliance year-end giving, please contact Trine Lustig, vice president of philanthropy at 401-421-4111, ext. 223 or tlustig@jewishallianceri.org, and visit the JFF new planned giving website for easy ways to give and save: jewishallianceri.giftplans.org. Always be sure to consult your own financial adviser for specific determinations and further guidance.

JENNIFER ZWIRN is a member of the Jewish Alliance philanthropy team.