Added Value for Your Year-End Gifts

Many thoughtful (and tax-wise) individuals make gifts to worthwhile organizations as the year comes to a close.  Many know they can magnify their giving, and charitable deductions, by choosing carefully the assets that they contribute.  Here are some good candidates:

• Stocks that have gone up in value can be given at remarkable tax savings.  Donors can deduct the current fair market value of securities, not just what they paid originally (assuming their stocks have been owned more than one year), and capital gains taxes are completely avoided.

• Old life insurance policies, no longer needed for family protection, can make ideal charitable gifts.  Donors are entitled to deductions for roughly the cash surrender value of such policies, and payments for remaining premiums are fully tax deductible.

• U.S. savings bonds sometimes lie forgotten in a desk or safe deposit box.  Cashing these bonds and contributing the proceeds will produce a charitable deduction that offsets tax on any unreported interest and reduces other taxable income.

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