Year End Gift Ideas
Year-end giving is as easy as making a charitable gift and saving on taxes. Giving is, of course, much more than tax brackets and charitable deductions. Tzedakah or philanthropy provides the meaningful difference in what we can do to improve the world. Take a moment to review the best ways to save and give.

The tax laws intentionally encourage charitable giving. Because of the income tax charitable
deduction, individuals who make their gifts by December 31, and itemize, can significantly
reduce their income taxes for 2003.

Example: If you are in a 33% tax bracket and itemize deductions, a $1000 gift to the Foundation by December 31 will save you $330 in 2003 taxes.

As always, please discuss your 2003 year-end tax planning with your professional advisor.

GIFTS OF CASH

There is no easier way to garner a charitable deduction for 2003 than by simply writing a
check! Make sure your envelope is postmarked by December 31 to qualify as a 2003 gift.
If you itemize, your outright gifts of cash are fully deductible for federal income tax purposes up to 50% of your adjusted gross income. If your total gifts should exceed this limitation, the excess may be carried forward for tax purposes for up to five additional years.

Some employers will match charitable gifts, meaning your gifts are worth even more. If your company has a matching gifts programs be sure to include a matching gift form along with your check. Forms can typically be found on your company’s website or human resources department.

GIFTS OF STOCK OR MUTUAL FUNDS

Giving long term-appreciated stock or mutual funds offers you a two-fold tax savings:

1. Avoid paying capital gains tax on the increase in value of your stock or mutual fund.

2. Receive a tax deduction for the full fair market value of the asset on the date of the gift. For
income tax purposes the value of such gifts may be deducted up to 30% of adjusted gross income, with an additional five-year carry forward.

Example: If you purchased stock many years ago for only $1,000 and now it’s worth $10,000 an outright gift would result in a charitable deduction of $10,000. In addition, there are no capital gains on the $9,000 of appreciation.

GIFTS OF REAL ESTATE

If you have owned your home, a vacation home, a farm or acreage for many years, a charitable gift of that real estate can be especially tax-advantageous. Your property may have so appreciated in value over the years that its sale would result in a sizeable capital gains tax. If given to the TOP Jewish Foundation, you avoid the tax and realize a charitable deduction for the full fair market value of the real estate.
You may also consider a gift of your personal residence or farm, reserving the right to continue
to live in the house or farm property for life (and, if applicable, the lifetime of your surviving spouse). Through such an arrangement, you will be entitled to a constant income tax deduction for a portion of the fair market value of the property.

GIFTS OF LIFE INSURANCE

If you own a life insurance policy that is no longer needed, consider it the perfect vehicle for a 2003 year end charitable gift. To receive a charitable deduction, name the TOP Jewish Foundation as the owner and beneficiary of the policy. If the policy has a cash value, you can take a charitable deduction approximately equal to the cash value at the time of the gift. In addition, if annual premiums are still to be made and you continue to pay them, those premiums will become tax deductible each year.

LIFE INCOME GIFTS

A life income gift allows you to transfer assets now and continue to receive income from the cash, stock, or other property contributed. Life income gifts can:

(1) Increase your income for life

(2) Provide a generous charitable deduction in 2003 (and help you avoid paying any capital gains tax on the appreciation)

A life income gift can be made through a charitable gift annuity. This will allow you and/or your spouse (or another beneficiary) to receive annually a fixed percentage of income no matter what happens with the stock market or interest rates. See above box for more details.

BEQUESTS AND RETIREMENT ASSETS

While you’re considering your 2003 income tax savings, this may also be a good time to consider long-term tax savings. The federal estate tax can still take approximately 50% of one’s estate at the time of death. That’s a higher tax than the income tax! It definitely pays to do some advance planning with your attorney and other professional advisors.

You can add the TOP Jewish Foundation in your estate plans by simply including the following:
“I leave ($--) or (---% of the residue my estate) to Tampa Orlando Pinellas (TOP) Jewish Foundation, Inc. to create a charitable fund to be known as the (donor name) Endowment Fund, benefiting (beneficiary agency) with interest income from the endowment to be used for (list purpose). The principal of the endowment shall not be invaded.

At the time of my death, all tribute gifts should be made to a memorial fund in my name created and held by TOP Jewish Foundation. All proceeds from my named memorial fund will be added to my charitable gift made from my estate to the TOP Jewish Foundation.”

Retirement plan proceeds paid after death are subject to both income and estate taxes. If a donor has accumulated substantial amounts in a retirement account and is at a high tax bracket, they are not the most ideal assets to bequeath to heirs.

Naming the TOP Jewish Foundation as the death beneficiary of one of more such plans (pension, profit sharing, Keogh, IRA, 401(k) etc.), can save such taxes and greatly assist the TOP Jewish Foundation in serving the needs of a donor’s favorite charity or cause. Therefore, a donor can make a significant donation with plan assets that would otherwise be used to pay income and estate taxes.