December 10, 2001
Foundation Official Offers Tips for Year-End Giving
The end of the calendar year is a
time when many consider the benefits of making charitable donations
in order to maximize tax savings.
"No matter what your
income," says Nancy Schroeder, associate vice president of the
UConn Foundation, "if you itemize deductions on your tax
return you can almost always lower the amount you
Schroeder offers some tips for
- For those wondering whether to sell
depreciated stocks or other securities they hold, as a result of
the difficult stock market climate this year, instead of simply
absorbing the loss at this time, Schroeder suggests selling them,
taking the tax deduction for the loss, and giving the proceeds to
charity. The tax benefit from the charitable donation may further
offset any other capital gains.
- Instead of taking just the standard
deduction on your tax return, consider doubling or tripling your
charitable contributions in alternate years, she advises. This way,
you may be able to deduct enough to itemize every second or third
- If you would like to make a
contribution and receive a charitable income tax deduction this
year, but can't afford to give up the income from a particular
asset, consider a life-income gift - a charitable gift annuity or
charitable trust. Based on your age and IRS calculations, says
Schroeder, you could receive income for life for yourself and/or
another individual, and receive a charitable income tax deduction
- If you have a vacation home or
other real estate you are not using, plan now for a gift of the
property next year and you may not only avoid any capital gains
tax, but also receive a charitable deduction for the property's
full fair-market value.
The decision, cautions Schroeder,
ultimately depends on each individual's particular financial
and tax situation. "Contact your tax advisor to determine what
will work to your best advantage," she urges.
If you have questions about making
gifts or how to set up a gift to provide a steady income stream
plus tax benefits, contact the Office of Gift Planning at (860)
486-5000 or by e-mail: email@example.com.