Enjoy Tax Savings
Federal tax laws and those of many states make it possible to reduce or eliminate taxes on funds you give for charitable purposes. For example, because funds used to make charitable gifts are deducted from the amount otherwise subject to federal income tax when you itemize your deductions, you may be able to give more than you thought possible.
The amount and timing of your charitable gifts are completely within your control. This is why each year millions of Americans take advantage of the opportunity to make charitable gifts while also reducing their tax liability.
Gifts of Cash
While all gifts mailed or otherwise completed by December 31 qualify for tax deductibility for 2007, gifts made by cash or check are the most popular ways to give. Through gifts of cash, it is possible to eliminate or reduce income tax on up to 50% of your adjusted gross income.
Larger gifts may result in tax savings in as many as five future tax years. Remember, the higher your tax bracket, the more you save.
Please be sure to see if your company has a matching gift program. Your donation may be matched from your company and/or organization based on pre-established formulas and limits. In addition, you can make your gift online at www.scs.edu.
Save More When You Give Other Assets
Making gifts of stocks, bonds, and/or mutual funds can bring extra tax savings. When making such gifts, always consider what the securities originally cost in relation to what they are worth today. If you have held such assets for longer than a year, you can generally give them and deduct their current value, including any “paper profits,” from your taxable income.
Congress has provided that in addition to regular tax savings, you also do not have to pay capital gains tax when you give assets that have increased in value. This additional tax savings is another reason why some people choose to make gifts in this way.
When making a gift of securities, check with your financial services provider to ensure that your gift is completed properly and in a timely manner. You should allow additional time for gifts of mutual fund shares or non-publicly traded securities.
Give From Your IRA
If you are over the age of 701/2, Congress has made it possible to make tax-free gifts directly from an Individual Retirement Account (IRA) before the end of 2007.
Giving in this way assures that these funds will never be subject to income or estate tax.
This may make it possible to give more at the same or lower cost than in the past. Check with your IRA administrator for applicable time limits and other details.
Leaving a Legacy
Toward the end of each year, many people also choose to review their long-range estate and financial plans. Wills, life insurance, retirement accounts, and other planning vehicles can offer special ways to leave a lasting legacy to Saint Charles Borromeo Seminary. There are also ways to provide for meaningful future gifts while generating income, immediate tax savings, and other benefits today.
Act Today
As you can see, there are many ways you can make meaningful charitable contributions by carefully planning the timing of your gifts and the property used to fund them. We will be pleased to provide more information to you and/or your advisors as you complete your plans between now and the end of this year. Please contact the Institutional Advancement Office at Saint Charles Borromeo Seminary at 610-785-6231. |
