Gifts of cash, usually made by a check, are the most popular form of charitable giving. Cash gifts are attractive because they are simple to make, immediately effective, and easily directed to the greatest needs. Cash contributions may be deducted up to fifty percent (50%) of the donor’s adjusted gross income. Should the gift total exceed this amount for one year, the remaining deduction may be used in succeeding tax years for up to five years.
In addition to checks, the use of a credit card or direct deposit arrangement allows the donor to make a gift with a simple phone call or to make a significant gift through monthly installments. In every instance, meeting the donor’s needs and wishes is our first priority.
Giving Appreciated Assets
Gifts of those assets that have gone up in value since their purchase are particularly attractive to the donor.
- Sales of stocks, bonds, mutual funds, and real property that have appreciated in value generate a taxable capital gain.
- Gifts of appreciated assets are deductible at their full fair market value if they have been held longer than twelve months.
- The full fair market value of these assets can be deducted up to thirty (30%) of the donor’s adjusted gross income. The donor may elect to qualify for a fifty percent (50%) adjusted gross income ceiling by reducing the value of the gift by the full amount of its appreciation, deducting only what was originally paid for the asset.
- Excess deductions can be carried forward into as many as five additional tax years.