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There's Still Time to Make a Year-End
Gift
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 2005 tax deductions. You still have until
December 31stto 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.
Gifts of 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 Tax1 Avoided ($8,000 X
15%) |
$1200 |
| Net
proceeds to Sigma Nu Educational Foundation |
$10,000 |
| Federal
Income Tax Deduction @ 33%2 |
$3300 |
| Net
Cost of the $10,000 Gift ($10,000 - $1,200
- $3,300) |
$5500 |
1 Shares must be held for more than
one year. Otherwise the gain is subject to ordinary
income tax.
2 Based upon a 33% tax bracket. In
some states the donor may also earn a state income
tax deduction.
To make a gift of appreciated stock prior to the
end of the year, please contact James Owens at
1-888-236-5323.
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 the Sigma Nu Foundation
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 receive 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 Sigma Nu 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 2005. If you would like to make a gift online,
click
here to go to our online giving form 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 2005, please remember the Sigma
Nu Educational Foundation in your plans.
Have a Happy and Blessed New Year!
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