Year-End Giving

Year-End Giving

As you consider a charitable gift between now and the end of the year, remember that gifts made on or before December 31st can generate income tax deductions to reduce your tax bill if you are planning to itemize your deductions*.

Center of Concern
1665 Elk Blvd.
Des Plaines, IL 60016
Tax Identification #36-2984360

Stocks and Mutual Funds
Donate appreciated shares of stock or a mutual fund that you’ve owned for more than a year instead of writing a check and giving cash. If your donation of stock is worth $1,000 or more, the tax benefits can really reduce the after-tax cost of the gift. That’s because when you donate shares of an investment that has appreciated, you avoid ever reporting the gains as taxable income. This tax benefit stems from the general rule that when you donate long-term property (owned more than one year), the deduction is equal to the donated property’s fair market value. This results in two potential tax benefits: a charitable donation deduction, plus the avoidance of tax on the capital gains.

Wire transfers must be received at the Center of Concern’s bank on or before December 31, 2019, in order to be considered a 2019 contribution.

Giving from your IRA
For anyone who has an IRA and is required to take minimum distributions from it each year, there’s a way to make charitable donations that will reduce taxable income dollar-for-dollar, even if you plan to claim the standard deduction and not itemize. Here’s how, and who, can do it.

If you’re required to take minimum withdrawals from an IRA or retirement plan because you’re age 70½ or older, you can use the pretax dollars in your IRA to make direct donations to a nonprofit, religious organization or other qualified charity.

This is called the IRA Qualified Charitable Distribution rule, and it allows IRA owners age 70½ or older who are subject to the required minimum distribution (RMD) rules to use the untaxed money in an IRA to donate to a charity tax-free. But you can’t also claim this charitable donation on your tax return (sorry, no double dipping allowed).

Note that the money withdrawn from an IRA and donated to charity stays out of your adjusted gross income only if you make a direct transfer to the charity. It’s not tax-free if you withdraw the money first, deposit it into another account and then donate it to the charity.

Bunching
Bunching the donations you planned to make for the next several years and make a single large donation now, before 2019 ends. If the charitable donation is more than your standard deduction, you can claim the entire amount as an itemized deduction on your 2019 tax return. You can do this is via a donor giving account or under a charitable giving program or donor-advised fund. Most financial firms offer charitable giving programs that are easy to set up.
Online via Credit Card or electronic check
The most convenient, secure and expedient way to ensure that your year-end gift to the Center of Concern is received on time is to make it online via the Center’s giving website – click here. You may make an online gift any time before 11:59 p.m. (Central Standard Time) on December 31, 2019.
Checks
Contributions mailed via U.S. Postal Service with postmark and check date on or before December 31, 2018. Gifts may be mailed to the following address:

Center of Concern
1665 Elk Blvd.
Des Plaines, IL 60016
Tax Identification #36-2984360

Questions about year-end giving and supporting the Center of Concern Please contact Greg at (847) 823-0453 x1011 for additional information.

*This information should not be construed as investment, tax or legal advice. Before making your charitable gift, please consult with your financial, legal and other advisers. Information provided is general in nature. It is not intended to be, and should not be construed as legal or tax advice. The Center of Concern does not provide legal or tax advice. Laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy, or completeness of this information.