Thank you to all of our donors and friends for another year of improving lives in Central Minnesota. As the year draws to a close now is the perfect time to think about completing any remaining charitable gifts you planned for this year.
There are many ways for you to accomplish your gift giving goals that are tax deductible and we can accept nearly all of them. Aside from the usual cash, check or payroll deduction, you can give by credit card or bank debit. With credit card gifts you can charge them in December and get credit for them in the current tax year but wait until next year to pay for them.
Donating stock can reduce your taxes in two ways – you get credit for the full value of the stock at the date it is transferred to a charity and also avoid tax on the gain in stock value. If you are receiving distributions from an IRA or 401k, you may be able to make a withdrawal for charitable purposes that will also count toward your required annual distribution. There are specific rules around stock and retirement fund gifts that must be carefully followed. Be sure to check with your broker or plan administrator to make sure you get the full benefit of your gifts.
If you’ve made a gift to United Way of Central Minnesota this year you may be wondering when you will receive a tax receipt. With the exception of payroll gifts, we provide annual tax receipts in January for all gifts of $250 or more that we received in the previous year. So, if you have made multiple payments on your pledge this year, attended an Imagination Library Progressive Dinner or participated in our Midnight Run, the tax deductible portion of those gifts will be included in your annual tax receipt.
For payroll gifts, the IRS requires that you obtain information from your employer that shows how much was deducted from your paychecks during the year. The best way to provide this documentation to your tax preparer is by keeping your final December pay stub.
If you wish to make a gift before the end of the year, have questions regarding past or future contributions or about tax receipts, please give us a call and we will be happy to help in any way we can.
Best wishes to you in the New Year!
Written by: JoAnn Henry, CPA inactive, Director of Finance