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(Part of a series of articles on charitable giving and the Union County Foundation by David Vollrath - Exec. Dir.) Last minute charitable giving is often a part of the Holiday Season. Perhaps you will find the following guidelines helpful as you make final December gifts for this tax year. Pledges – A pledge is not deductible until the funds have actually been paid. If you pledge $1500 this year and pay $500 of the pledge prior to year-end then $500 is deductible, not the entire $1500. Stock Gifts - 2003 was an unusually good year for the stock market. Some donors may want to donate appreciated stock to charity to avoid capital gains tax while still capturing a charitable deduction for the stock’s value. The gift value for publicly traded stock is the average between the highest and lowest sale price on the date of the gift. For end of year gifts it is very important that the transfer be effective by the December 31. Written confirmation that the charity has taken actual possession of the stock or that the financial services firm has transferred the shares to an account for the charity must be in your tax records. Cars – Donations of vehicles are becoming increasingly popular. The charitable deduction is not merely the base "Blue Book" value. The deduction must reflect the model, the mileage, the local market, and the vehicle’s condition. The acceptable value may be substantially different (higher or lower) then the average book value when all these factors are considered. Property – If property over $5000 other than publicly traded securities is gifted to charity then a qualified independent appraisal must be obtained. The appraisal may be obtained up until April 15 or to an extended filing date if applicable. Cash – Generally gifts are deductible when they are delivered. A cash gift is deductible when the charity receives the cash. A check is also deductible when given to the charity. If a check is sent in the mail the date of the mailing is the effective date for the deduction. This is especially important for year-end gifts. In order to deduct a gift this year you must be certain that the gift was made or mailed before December 31. The IRS mandates that charities provide donors a legal receipt by April 1 for cash gifts of $250 or more. Credit Cards – A charitable gift given by credit card is deductible when the card is charged not when the charge card billing is paid. The Union County Foundation is equipped to help you achieve your charitable goals by providing pertinent information and assisting you with charitable giving. Please call us at 937-642-9618, email commfounduc@imetweb.net, reference our website at www.emarysville.com/unioncountyfoundation, or stop by our Marysville office at 126 N. Main St. We are committed to helping you.... “preserve your footprint in time.” |
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