Year-End Giving - There’s Still Time

Along with the hustle-and-bustle of the holidays comes the last minute effort to make year-end charitable contributions that will count toward your 2006 tax deductions. You still have until December 31st to make a contribution to your favorite charities, and there are many ways to do so. We have provided a few suggestions, but we also encourage you to meet with your accountant or other financial advisor to discuss your most advantageous opportunities for giving at the end of the year.

Take Stock in Education - Gift of Appreciated Stock

Gifts of appreciated stock can often provide an attractive opportunity for the donor who will receive a tax-deduction based upon the value of the security on the date of the contribution. In addition the donor avoids costly capital gains taxes by giving the stock to charity. The combined benefit of the income tax deduction and avoidance of the capital gains tax often reduces the actual "cost" of the gift. For example, in this illustration, the cost of the gift is almost half of the actual donation to the organization:

Today’s value of 400 shares of XYZ stock	$10,000
Original value of 400 shares of XYZ stock	-$2000
Capital Appreciation	$8000
Capital Gains Tax* Avoided ($8,000 X 15%)	$1200
Net proceeds to El Segundo Educational Foundation	$10,000
Federal Income Tax Deduction @ 33%**	$3300
Net Cost of the $10,000 Gift ($10,000 - $1,200 - $3,300)	$5500

* Shares must be held for more than one year. Otherwise the gain is subject to ordinary income tax.
** Based upon a 33% tax bracket. In some states the donor may also earn a state income tax deduction.

Take Stock in Education today! To make a gift of appreciated stock to the ESEF prior to the end of the year, please contact Tony Smercina at (248)464-2003 or tony@charitablepartners.com.

Gifts of Life Insurance

Life insurance policies make a great year-end charitable contribution, especially those policies that are no longer needed due to a change in life circumstances. Just name ESEF as the owner and beneficiary of the policy before the end of the year, and you may be able to take a charitable deduction at or near the cash value of the policy at the time of the gift. If there are still annual premiums, you can make the payment on those premiums and receive an additional tax deduction in the years to come.

If you would like to make a gift of life insurance, please contact your insurance agent for more information and to request the forms required to complete the transaction.

Gifts of Cash

Especially at the end of the year, there’s no easier way to make a gift to the El Segundo Educational Foundation than simply writing a check or making an online gift using your credit card. If you are mailing a check, the envelope must be postmarked by December 31 in order to qualify for a tax deduction in 2006. If you would like to make a gift online, click here to make an online gift prior to December 31.

There are many additional ways to make the most of your year-end giving. Be sure to check with your accountant or other tax advisor for additional information related to your particular circumstance.

As you wrap up 2006, please remember the El Segundo Educational Foundation in your plans. Your contribution, of any amount, will make a difference as we continue to Foster Excellence in Education for the children of the El Segundo Unified School District.

Have a Happy and Blessed New Year!