Why Timing Matters To qualify for a tax benefit (when you itemize deductions on your income tax return), you must make your gift by Dec. 31. The gift date—the date used for tax purposes—is the day you transfer control of the asset. Here are the gift dates by type. • Checks—The mailing date is the date of the gift. • Securities—If securities are electronically transferred to a charity of your choice, the gift date is typically the day the securities
• Life insurance—Date signed on paperwork transferring ownership to the charity of your choice, assuming you properly forward the form on to the insurance company. • Artwork and other tangible personal
enter our account. If securities are
property—The day you deliver the property
mailed, the mailing date is the gift date.
with a signed document transferring
It is important to send, by registered or
ownership, if necessary.
certified mail, the unsigned certificates in a separate envelope from the signed stock power and letter of intent. • Real estate—The day you deliver the signed deed to us is the date of the gift. If your state law requires recording of the deed to fulfill the title, though, then the date of recording is the gift date. • Life income gifts—Signed contract date at the time of your donation.
We recommend that you discuss your
827 Fort Street Mall Honolulu, HI 96813-4317 give@hawaiicommunityfoundation.org 808-792-3103 HawaiiCommunityFoundation.org
charitable gift plans with your tax or legal advisors. You can also contact us. We can help ensure that your gift plans meet your year-end goals.
6 Smart Strategies for
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The information in this publication is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.
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Year-End Giving
Now’s the Perfect Time
6 WAYS to Benefit From a Year-End Gift The final months of the year are traditionally considered the season of giving. In addition to the gifts we
give to the important people in our lives, this season of generosity is also the prime time to show support
the gift, you may qualify for an income tax deduction based, in part, on the charitable
for the causes we love. When you support our island communities with a year-end gift, not only will others
portion of the securities’ full value, in
benefit, but so will you. Few things in life offer more personal satisfaction than helping others. When you make a gift at year-end, not only will you help improve
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addition to eliminating up-front capital
Save taxes on appreciated stock. When you donate stocks to Hawai�i Community Foundation that are worth more
our communities, but you may also receive
than what you originally paid for them,
important tax benefits. Here is what you need
you can claim deductions for their full fair
to know about making charitable gifts before the year comes to a close.
Explore Your Options
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If you use appreciated securities to fund
gains tax.
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Give and Receive
Put an insurance policy to good use.
Depending on the gift arrangements you
An old policy you no longer need can
choose, you can:
make a big impact in our community. To
• Reduce your income taxes.
market value and eliminate any tax on the
qualify as a deductible gift, your charity of
appreciation.
choice must become the policy owner. For
• Increase your spendable income.
most types of insurance policies, your tax
• Reduce or eliminate capital gains tax.
Avoid the hassles and costs associated with selling real estate.
deduction is usually the cost basis or the
Like securities, if you try to sell appreciated
is less.
unique situation and tax considerations, some
property, you will be subject to capital gains
gift types may be more practical than others.
tax on the appreciation. By donating the
require premiums to be paid. When you
Following are a number of popular options.
property to charity, you can enjoy tax savings
donate these, the future premiums are
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and relieve yourself from the hassles of
tax-deductible as you pay them.
We’re here to answer any questions you
Repurpose special personal items.
tips about getting the most from your gift.
Although there may still be time to make several different types of charitable gifts, based on your
Make an immediate impact. Cash is an easy way to give each year. You may receive an income tax charitable deduction for the full value of the gift, up to 60 percent
selling or maintaining it.
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Earn income from your gift. Gifts such as a charitable remainder trust
fair market value of the policy—whichever
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It is more common for policies to still
artwork or other collectibles, that you would like to give to improve our communities.
check for less than $250, a copy of the check
a beneficiary of your choice, with payments
Please contact us so that we can help you
will suffice as a record of the gift. You should
for life or a period of years, and the charities
determine the charitable deductions for
obtain a receipt for gifts of $250 or more.
of your choice with support thereafter.
your personal property gift.
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might have and provide you with helpful
Perhaps you have tangible items, such as
or a charitable gift annuity provide you, or
of your adjusted gross income. If you write a
Contact Us
give@hawaiicommunityfoundation.org 808-792-3103 HawaiiCommunityFoundation.org