For many people, the end of the year is a time for making gifts – not only to family and friends but also to valued organizations such as the Taft School. December is also your last chance to obtain charitable deductions you can claim next April.

As you plan your year-end giving, keep in mind that contributing cash is just one way to support Taft, including scholarship and financial aid support, and enriching the academic experience. Consider the following tax-smart techniques to support Taft before the end of the year.

Give appreciated securities

Despite uncertainties, the stock market has been great over the years. Despite some setbacks, you have probably seen your investments grow over the last few years. However, selling appreciated securities will trigger a capital gains tax of 15% for most taxpayers.

By transferring your appreciated securities directly to Taft instead of selling you avoid the capital gains and receive a tax deduction for the full value of the securities.

Help Taft—and yourself

You may hesitate to give an asset you depend on for income. With a “life income gift,” you can donate your asset and still receive income or payments, perhaps even increasing your cash flow. In return, you will obtain a current income tax deduction. When your life income gift ends, what remains from your gift benefits Taft and helps to provide an engaging learning experience for our talented and diverse students.

Consider an “Charitable Rollover” Gift from your IRA

If you are over age 70½ and have an IRA, you can direct your plan administrator to make a “qualified charitable distribution” to Taft. While you will not receive a tax deduction, the amount transferred (up to a total of $105,000 this year) will not be added to your taxable income, as it would if you made a withdrawal from your IRA. Even better: your qualified charitable distribution will count against your required minimum distribution for the year.

Start planning now

As always, your own advisors are in the best position to help you decide what is most appropriate, whether now or in the new year. Remember, too: Taft is available to work with you and your advisors to explore options or provide additional information.