The Benefits of Year-End Giving

December 2015

Year-end is often an opportune time to consider financial and tax planning strategies. You still have time to take action that could reduce your income tax liability for 2015, and we urge you to consider the benefits of year-end giving, both personal and for those causes in our Jewish community that are important to you. Year-end gifts can also be used to create your lasting Jewish legacy, and any endowment gift can be completed before December 31.

Shift income and deductions where possible. Deferring receipt of income to 2016 or accelerating deductions into 2015 by prepaying a deductible expense can lower this year’s bill. Accelerating the payment of or increasing charitable contributions at year-end is an effective planning strategy to reduce your tax liability and get needed financial support to your favorite charities sooner.

Utilize appreciated stock for your charitable giving. Charitable contributions of appreciated securities held for more than one year, including stocks, bonds and mutual funds, remain one of the most tax-efficient ways to redeem your commitment to the Annual Greater Miami Jewish Federation/UJA Campaign. Donate appreciated securities to create or add to a Donor Advised Fund or any permanent Foundation endowment as well. You are entitled to a tax deduction for the full fair market value of such gifts, and you pay no capital gains tax on any appreciation.

It is once again possible to make tax-favored charitable gifts from traditional and Roth IRA accounts and there is still time to do it for 2015. Congress passed legislation retroactively extending the charitable IRA rollover for this year and making this provision permanent for future years. The provision allows individuals age 70½ or older to make tax-free gifts totaling up to $100,000 from a traditional IRA account directly to qualified charities such as the Greater Miami Jewish Federation, provided they are completed by December 31. If a spouse has IRA accounts, you may each make gifts of up to $100,000 from these accounts. While you cannot claim a charitable deduction for IRA gifts, this distribution from your IRA counts toward your minimum required distribution and does not trigger income tax for you. IRA charitable rollovers can be especially attractive if you or a family member has assets in an IRA that you may be thinking of leaving to charity, if you are considering making a large one-time gift or if you do not itemize deductions. To complete an IRA Charitable Rollover for 2015, please contact your IRA provider for exact instructions.

Federation can help you maximize your gift to the Jewish people. Federation professionals are always available to work with you and your advisors to maximize the benefits of these and other tax planning strategies. For further information or assistance, please call Steve Lande at 786-866-8623, or Steve Schwartz at 786-866-8474. Remember, it is advisable to consult your tax and investment professionals before taking any final action.

Happy New Year and thank you for your generous support.

Amy N. Dean                                              Lily Serviansky
General Campaign Chair                           Chair
Greater Miami Jewish Federation              The Foundation of the Greater Miami Jewish Federation