How Do Smart Donors Give to Charities?

Most Americans who give to charitable organizations simply write checks – or charge gifts to credit cards.  But a recent IRS study suggests there may be better ways to give.  The report disclosed that during a recent tax year $60 billion in deductions were claimed for “noncash” contributions.

• 202,019 tax returns filed for 2007 included gifts of corporate stock, averaging $52,634 per gift;

• 14,160 returns listed gifts of mutual funds, with an average gift amount of $60,650;

• 4,215 returns showed gifts of “other investments,” defined as bonds, life insurance, annuities, CDs, life insurance policies, notes, options, partnership interests, and real estate investment trusts, with an average gift size of $254,792;

• 8,552 returns listed gifts or real estate (apartments, cabins, houses, and other residential and commercial property), with an average gift amount of $190,995;

• Gifts of  “land” (farms, orchards and open lots) appeared on 7,811 returns, averaging $489,360 per contribution;

What did most of these gifts have in common?  They tended to be larger contributions, but they most likely consisted of investment assets that had gone up in value – and therefore had special tax advantages for charitable giving.  Gifts of appreciated assets save both income taxes and capital gains taxes.  Charitable deductions are allowed not just for an item’s original cost to the donor, but for that cost plus any growth in value – assuming the donor owned the asset more than one year.  Gifts of appreciated assets thus are one good way for friends to increase their support for our programs – often at remarkably low cost. 

Please contact us for information about you might benefit KQED and KTEH through your “non cash” assets.

 

Please contact us for more information.