Year End Giving

This year, more than ever, you may find that time spent determining the best ways to make your charitable gifts can help you stretch your charitable dollars. Pending and proposed changes to tax laws could affect the amount that you can deduct for qualified charitable gifts beginning in 2013. Read on for ideas that may be beneficial as you consider your charitable giving plans for 2012.

Please contact Jennifer Winnett Denniston '98, director of planned and special gifts, at (574) 284-4600 or if you have any questions about the information found here.

Indiana Tax Credit

Timing of Gifts

Deciding What to Give

Gifts of Stock

Gifts from Retirement Accounts

Estate Gifts

Enjoy Tax Savings

As you consider your charitable gifts between now and the end of the year, remember that gifts made now can generate income tax deductions that could help reduce your tax bill for 2012. 

With proposed changes in federal tax laws, giving this year may never save you more.
The amount you save depends on tax rates and the portion of your gifts you are allowed to deduct.

Only gifts made by December 31 can help reduce the amount of taxes you will owe next April. 

Indiana Tax Credit (back to top)

As an Indiana resident, when you make a gift to Saint Mary’s College, the State of Indiana will give you a tax credit on your 2012 return. The credit will equal half of your gift to the College - up to $200 if filing jointly and $100 if filing single. The tax credit is applied directly against the “bottom line” of your state income tax return, either reducing the amount of taxes owed or providing a refund on taxes paid.  

To take advantage of this opportunity, you must use the Indiana Department of Revenue Schedule CC-40 when filing your state income tax return. Click here to download the form.

Timing of Gifts (back to top)

To receive tax benefits, the timing of your gift is critical and varies depending on what you give and how you give it.

Checks: The date you delivered or mailed your donation is generally recognized as the gift date for tax purposes.

Credit Cards: The date your account is debited is considered the date of the donation. If mailing a credit card donation in December, please mail early in the month. The College debits credit cards on the date we receive the authorization (by mail, phone, or online), but mail delivery may be slow, especially toward the end of December. To protect your year-end tax-deduction it may be wiser to make your donation online or by telephone at (800) 762-8871.

Please be advised that the date on your receipt from Saint Mary’s reflects when the College received your gift and does not imply the date the gift was made. To determine the tax consequences of your gift, please consult IRS Publication 526 or your tax advisor.

Deciding What to Give (back to top)

Cash: Charitable gifts are most often made in the form of cash, checks and electronic transfers. When you itemize your tax deductions, gifts of cash may be used to eliminate federal income tax on up to half of your adjusted gross income (AGI). You may enjoy state income tax savings as well.

Securities: Giving securities (stocks, bonds or mutual funds) that are worth more than they cost can bring additional tax savings. Such gifts are generally deductible for income tax purposes at their full current value if they have been owned for longer than one year. They can be used to offset tax on up to 30 percent of your AGI. As an additional benefit, no tax is owed on capital gain that could be due in the event of a sale.  

If you have investments that are now worth less than they cost, consider selling them and using the cash proceeds to make a charitable gift. This creates a loss you may be able to deduct from other taxable income as well as a deduction for the amount of the cash contribution. The combined deductions for the gift and the loss may total more than the current value of the investment. 

Whether you make a gift in the form of cash or other property, any unused deductions may serve to reduce your taxes in as many as five future years. 

Important Information for Making a Gift of Stock (back to top)

Gifts of stock can be made with your broker’s assistance by electronic transfer.  This process works for all publicly traded shares of stock.  Request your broker to transfer the stated number of shares electronically to:

     National Financial Services DTCC# 0226
     For the benefit of:  Saint Mary’s College, Notre Dame, Indiana
     Account# NTG-027743

If you or your broker has questions, please contact Adaline Cashore at 574-284-4706.

Gifts from Retirement Accounts (back to top)

Retirement plan assets can be a practical source from which to make gifts. Many tax and financial advisors suggest using these funds to make charitable gifts because amounts withdrawn from retirement accounts can be taxable to you and eventually to your heirs if left to them. 

Giving in this way may result in little or no tax impact when you report the amount withdrawn along with an offsetting charitable deduction. 

If you are over 70½, it may be possible to make tax-free gifts directly from your traditional or Roth IRA. Such transfers can satisfy minimum required distributions. 

Estate Gifts - Leaving a Legacy (back to top)

With changes in estate tax laws in recent years, many Americans find they will now be able to leave more to loved ones free of tax. This may also make it possible to give more for charitable purposes, both now or through your will or other long-range financial plans. You can include a charitable gift of a specific amount, a percentage of your estate, a certain property or all or a portion of what remains after first providing for loved ones. 

If you review your estate and financial plans at year end, you may want to consider leaving a lasting legacy to Saint Mary’s College through your will, trust, or life insurance policies. You can also make a meaningful future gift to Saint Mary’s while generating income, immediate tax savings, and other benefits today. Contact Jennifer Winnett Denniston '98, director of planned and special gifts, at (574) 284-4600 or visit our Planned Giving page for details.

Act Today (back to top)

As you can see, you can make meaningful and cost-effective charitable gifts to Saint Mary’s College by carefully planning their timing and the property used to fund them.

Changes scheduled for next year could reduce the tax benefit of some itemized charitable gifts, so acting now can assure you receive the maximum benefits.

We are pleased to provide more information to you and/or your advisors as you act to complete your plans.

© Saint Mary's College. This information reprinted with the permission of Robert F. Sharpe and Company.

The purpose of this information is to provide general gift, estate, and financial planning information. It is not intended as legal, accounting, or other professional advice. For assistance in planning charitable gifts with tax and other financial implications, the services of appropriate advisors should be obtained. Consult an attorney for advice if your plans require revision of a will or other legal document. Tax deductions vary based on applicable federal discount rates, which can change on a monthly basis. Some opportunities may not be available in all states.