Year-end is a great time for giving. Roughly 25% of charitable giving happens between Thanksgiving and New Year’s Eve, according to US News & World Report. When you donate to the Jewish Community Foundation of Greater Phoenix, you aren’t just giving money – you’re perpetuating your values and maintaining and enhancing the quality of life for future generations of our Jewish community. Consider the following tips to make your philanthropy more effective and to maximize the value of your year-end giving.
Give early and complete your gift by Dec. 31: Contributions are deductible in the year made, so be sure to get those gifts in by Dec. 31. A gift by check is complete when postmarked, even if not cashed until the following year. Credit card gifts are complete when your account is charged, even if the bill is not paid until 2015. Gifts of stocks, bonds, mutual funds, real estate or privately held business interests require more attention, so contact the foundation as soon as possible to ensure your gift is received by Dec. 31.
Determine what matters to you: When you consider where to donate, consider your priorities. Are you passionate about Jewish summer camp or educational programs? Environmental issues or promoting healthy lifestyles? Has a particular issue touched you or your family? Would you like to pay it forward for a scholarship or other assistance you received? Would you rather act locally, or give to organizations with global reach?
Determine the type of impact you want to make. Understand your own values, what you want to accomplish and whether you want to support many organizations or just a few. A few larger donations to select organizations can make a greater impact than many small donations to numerous causes. Consider whether you want to give to a big organization or a small one. At a large charity your individual gift will be one of many, but the combined impact can be great. Conversely, a small organization may not make as broad an impact, but your gift could make a bigger difference in the life of one person.
Give now and decide later. With a donor-advised fund at the Jewish Community Foundation you can claim a deduction for the contribution to your fund now, even though you are undecided about which causes you wish to support. Make your gift now and recommend grants to organizations – Jewish and secular – whenever you like. Instead of tracking all your charitable receipts throughout the year, you get a single receipt from the foundation. Plus, your donor-advised fund is invested by the foundation, so the impact of your giving grows as your fund grows.
Employer matching gifts program: Some companies will match the charitable donations of their employees and the employees’ spouses. Some match dollar-for-dollar, and some will match gifts for volunteer efforts. When you donate, find out whether your employer or your spouse’s employer has a matching gifts program, which can double your gift and impact.
Donate appreciated assets: Gifts of appreciated stocks, bonds and mutual funds owned more than a year are easy to donate and may entitle you to a tax deduction for their full value, regardless of the price you paid. By donating these assets, you can also avoid capital gains. Real estate donations and privately held business interests can also be attractive vehicles for charitable giving. If you are looking to maximize the tax benefit, donations of appreciated assets can go much farther than a simple cash donation.
Keep an eye open for the return of the charitable IRA rollover: Most experts predict that Congress will reauthorize the Charitable IRA Rollover before the end of 2014. Previous versions of the law allowed donors age 701⁄2 or older to donate up to $100,000 without being taxed on the IRA distributions, and to satisfy their required minimum distributions at the same time. This is an especially attractive option for anyone contemplating substantial year-end giving, including the creation of a permanent endowment.
Start a Permanent Endowment Fund: When you create a permanent endowment with the Jewish Community Foundation, you help secure the financial future of the organizations that matter most to you. You can start a named endowment fund for as little as $10,000, building it over time or through your estate. The foundation invests the funds with its other assets, so your endowment grows. Every year, 5% of your fund is distributed to support the organizations and causes you choose.
Remember Arizona’s charitable tax credits: Arizona taxpayers can receive a dollar-for-dollar tax credit for donations supporting public school extracurricular activities, private school tuition organizations, qualifying charitable organizations (formerly the “working poor” tax credit), qualifying foster care organizations and the Arizona Military Family Relief Fund. Different amounts can be claimed as credits for each of the donations, so contact your tax advisor or the Arizona Department of Revenue for details.
For a confidential meeting or more information, call the Jewish Community Foundation of Greater Phoenix at 480-699-1717.
Sheryl Quen is the Jewish Community foundation’s director of grants and communications. she is responsible for the administration and oversight of the organization’s competitive grant making program as well as the distribution of grants from donor-directed field of interest and designated endowment funds.
Richard Kasper brings more than 20 years of experience in law, nonprofit governance, community building and philanthropy to his role as President and CEO of the foundation. Professionally, he has had a successful law career, most recently as a partner with Ryan Rapp & Underwood PLC, where he provided legal counsel to numerous secular and Jewish nonprofit organizations, to individuals and to publicly traded and closely held companies.
