The holiday season probably triples your list of “things to do”, but here’s another item to add to the list: make your charitable gifts. Why? Because if you donate before the end of the year, you’ll see a tax break for next year when you itemize deductions on your income tax return.

Timing Is Key
Tax planning is a year-round process, but the year-end is your last opportunity to reduce current-year income taxes. Here are some smart year-end giving strategies:

	Prepay pledge. Speeding up deductions lets you save taxes sooner. Consider prepaying a pledge due next year or even beyond. Or make a larger contribution this year. (Pledges are deductible in the year fulfilled, not when made.)
	Give appreciated assets. Writing a check is simple, but when you give appreciated property you’ve held more than one year, you can claim a deduction for its full fair market value and avoid any tax on the appreciation. Generally, for securities, their fair market value is the mean between high and low on the date of delivery. For mutual fund shares, their fair market value is their redemption price.
	Watch your gift date. This determines the year of deduction. If you mail a check, the date of mailing is the date of the gift. For securities, the date of delivery determines both their valuation and the year of deduction. To be effective, delivery must be unconditional and the stock certificate properly endorsed or a separate stock power provided. If you hand them directly to us or our agent, that day is the gift date. If mailed to us, the date of mailing is the date of the gift. If you arrange for the certificate to be reissued in our name, the gift is effective on the date when the security is transferred to us on the corporation’s books, the date on the new certificate, so be sure to allow enough time.
	Gifts of real estate, memorabilia, works of art and other property. Generally, these assets are not traded on an exchange or over the counter. So fair market value is the price at which such property would change hands between a willing buyer and a willing seller, as substantiated by an appraisal.

The date of the gift is the date the property is received by the Endowment Fund. For real estate, this is the date we receive a properly executed deed (or its recording date in some states).

We Can Help

As you can see, your tax benefits depend on what you give and when you give it. We can assist you and your financial advisors with the details of reporting a gift to help support Phi Psi. Or if you’re still in the planning stages, ask us for help in planning how your donation can be more tax-efficient.

We appreciate your support, so we’ll do all we can for you in return! For more information, please contact the Foundation offices at 1.800.350.1852 to discuss the full range of year-end giving options and strategies.