IRS Wisdom For Year-End

What gift records should I keep?
It is important to keep all records and receipts. The IRS holds you personally responsible for obtaining a written acknowledgment from a charitable organization, such as Sigma Nu Educational Foundation, Inc., for any single contribution of $250 or more before you claim a deduction on your 2006 federal income tax return. The receipt from Sigma Nu should provide a good-faith estimate of the value of any goods or services you received, if any. In 2007, receipts or cancelled checks will be required for all cash gifts regardless of the amount. (Note: The Sigma Nu Educational Foundation, Inc. provides gift acknowledgements throughout the year. In January of 2007, we will mail additional receipts for all gifts received in 2006.)

Can giving stock be more beneficial than giving cash?
Your stock may be worth more than what you paid for it. If you have held the stock for more than 12 months, you can deduct the full fair market value of the stock at the time of your gift, no matter how much you paid for it. For example, if you donate securities valued at $50,000 that you purchased several years ago for $8,000, your deduction will be the full $50,000 value. Had you given $50,000 in cash, your deduction would be $50,000, too. Gifts of appreciated stock also give the added benefit of avoiding capital gains tax on the appreciation. (Note: In the example used here, if the stock was sold and the $50,000 contributed, the donor would pay capital gains taxes on the $42,000 in appreciation.)