Year-end Tax-wise Giving Tips

November 17th, 2015 / Susan Fou

There’s still time to support what you love and save on your taxes this year. Here are a few ideas:

  1. MAXIMIZE a charitable gift’s impact by making the donation before December 31—you’ll get an income tax deduction AND will reduce the taxable portion of your estate.*

  2. CONSIDER using appreciated securities or other property instead of cash for charitable gifts.

  3. EXPLORE setting up a charitable trust or gift annuity if you have appreciated securities that you want to diversify. By gifting stock to a charitable trust or annuity, you receive an income tax charitable deduction, reduce or defer capital gains tax on the sale of the stock—and receive quarterly payments. Any remaining funds go to Princeton after you (and/or a beneficiary) pass away.*

  4. MAKE a gift to Princeton through a charitable gift annuity if you are looking for fixed payments unaffected by the market. You’ll receive an initial tax deduction for a portion of your donation, reduce or defer capital gains taxes, and receive guaranteed payments for life.

  5. GIVE directly from your IRA and claim a charitable deduction. While Congress may not decide the status of the IRA charitable rollover until year end, many experts believe it will be reinstated—if it is, the distribution from your IRA will not be subject to income tax.*

*IRS limitations apply; consult with your financial advisor to see how these strategies may apply to your situation.

Thanks to Frank Demmerly Jr. ’72 and Robert McCartney ’56, members of Princeton’s Planned Giving Advisory Council, for their contributions in compiling these tips.