Below are a few quick tips for making a year-end gift which offers tax advantages for you and your family.  As always, we recommend you consult with your tax, legal and financial professionals to consider which charitable gift options are best for you.

  • IRA Charitable Rollovers (also known as Qualified Charitable Distribution)

    If you are 70½ years old or older, you can give up to $100,000 from your IRA directly to qualified charities such as the Purchase College Foundation (for Purchase College and The Performing Arts Center) or the Friends of the Neuberger Museum of Art.

    Having the funds transferred directly from the IRA to a charity as a Qualified Charitable Distribution prevents the money from becoming taxable income and could help reduce the amount of Social Security retirement benefits that are deemed taxable.  If you haven’t yet taken your Required Minimum Distribution for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.  (Is an IRA Charitable Rollover right for you?  Learn more here.)
       
  • Double Your Tax Break

    If you have large capital gains in your investment accounts, consider donating those stocks. You’ll get a full charitable donation credit for the fair market value of the gift and the Foundation or Friends—as qualifying tax-exempt  organizations—can sell the stocks without paying capital gains tax, regardless of how much your stock has appreciated. 

    NOTE: To assure a 2021 tax credit, it’s best to initiate stock transfers no later than December 27 as those stocks that need to clear the DTC (Depository Trust Company) can take three or more business days for processing.

  • Consider Setting Up a Donor-Advised Fund (or make a gift from an existing fund)

    Setting up a donor-advised fund can be particularly useful at year-end because it allows you to make a large gift and take the tax deduction immediately, but it does not require you to decide immediately which charities receive the funds or when. If you already have a fund established, considering making a gift to the Foundation or Friends. 
     

  • Double (or Triple) Your Gift by Giving Someone Else’s Money

    Many companies match employee donations to not-for-profits. Check with your employer to see if they will match your donation. If yes, send a completed and signed matching gift form with your gift and we will do the rest.

    NOTE: Some companies match gifts made by retirees and/or spouses.
     

  • Remember the Deadline

    Gifts of stocks, other securities, and IRA Charitable Rollovers (Qualified Charitable Donations) may take three or more business days to process.  Gifts must be completed by midnight on December 31st to receive a charitable deduction for the tax year. 
     

  • Keep Your Receipts

    In order to deduct any donation, be sure to keep your gift acknowledgement letter as a receipt stating the date of the contribution and the amount.  

 

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