Charitable giving is a hallmark of the upcoming holiday season. Here are some ways you can you sustain our commitment to fully preparing today’s Grinnellians-in-the-making — regardless of their ability to afford a college education. With your gift, you make it possible for Grinnellians of today and tomorrow to keep inventing the world — as only Grinnellians can.
Gift of Cash
Writing a check or charging your credit card is a simple way to make a gift. Your contribution is deductible and reduces your income tax. For example, if you are in the 24% income tax bracket and contribute $10,000, you can deduct $10,000 from your taxable income which will save you $2,400 in tax ($10,000 x 24% = $2,400).
If you mail a check, make sure the postmark is no later than December 31, 2024. If you charge your credit card, keep documentation that you authorized the charge before December 31 just in case the transaction is not processed right away.
Giving appreciated securities
A contribution of appreciated securities is a tax-smart way to support Grinnell College. If you have owned your securities for at least a year, you will receive a deduction for the full value on the day you give them to Grinnell College and you will avoid paying the capital gain tax you would have owed if you sold them. For example, if sold stock now worth $10,000 for which you paid $2,000, you would owe tax on the $8,000 gain. Contributing those shares to Grinnell College instead avoids the capital gain tax and allows you a $10,000 income tax deduction for your contribution.
The date of your contribution will be the date the securities are transferred into Grinnell College’s account. Sometimes the transfer can take a day or two, so it’s a good idea to allow time to make sure everything is complete before December 31, 2024.
Giving from your IRA
If you are 70½ or older, a Qualified Charitable Distribution allows you to make a gift to Grinnell College from your IRA and avoid the income taxes you would pay on a withdrawal. Your IRA contribution can also help meet your Required Minimum Distribution. Simply tell the administrator of your IRA that you want to make a “Qualified Charitable Distribution” to Grinnell College.
Conclusion
Always consult with your own advisors about how you can take full advantage of the tax savings resulting from your contributions. We are ready to work with you and your advisors to craft a year-end gift that makes the most tax-sense for you.