EOY tax credits through the Endowment Fund

As you do your year-end financial planning, consider maximizing your end of the year tax situation with an immediate deduction while benefiting charity. Select the best property to give.

  • Cash is convenient and provides you an income tax deduction when itemized on your income tax return.
  • Donate appreciated stock held for more than one year and derive an additional tax benefit: avoidance of capital gain. Consider choosing appreciated stock with the greatest capital gain to take maximum advantage of this unique tax benefit.
  • Give some, keep some. If you  do not wish to donate all of your shares of stock in a particular company, donate the amount of shares that will offset or reduce the gain when you sell the remainder of shares and keep the proceeds.
  • Sell stock that has lost value and donate the proceeds. You can deduct the loss in value (cost basis less current value) and derive an income tax charitable deduction for the current market value.
  • Until December 31, 2009, if you are 70 ½ years or older you may make a direct distribution of IRA assets up to $100,000 to a favorite charity without incurring income tax (provided the distribution would otherwise be taxable).
  • Match your gift with your employer's contribution. Many companies have matching-gift programs for charitable donations by simply enclosing the company form along with your donation, and the JCEF will take care of the rest.

Set up a philanthropic fund or supporting foundation.

  • The above gifts of $5,000 or more can establish a donor advised Philanthropic Fund in any name that you choose. A Philanthropic Fund is an efficient and easy way to simplify charitable giving and record keeping with flexibility in the timing and recipients of the grants.
  • For significant philanthropy, consider a Supporting Foundation, which qualifies as a public charity with all of the attendant tax benefits, personal involvement in grant making and investment strategy, and without the burdensome taxes and paper work of a private foundation.

Establish a life-income gift

For more information contact: Rita Choit Adler at 415.512.6287 or ritaa@sfjcf.org

Categories: Endowment


December 17, 2009


The Federation