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Column 19
Enid Ablowitz
Boulder Daily Camera

This series of articles on philanthropy are general in nature, but as Rotarians, I challenge you to think about your Rotary giving in a new way. Think not just about writing checks, transferring stock, and putting Rotary in your will. Think about the impact of your giving. According to the November Issue of The Rotarian, "your annual gift to the Rotary Foundation of Rotary International helps to rebuild impoverished communities and nations by resolving conflict, advancing human rights, eradicating disease, feeding the hungry, educating children and working toward a common goal-the gift of world peace and understanding." Now that's impact.

Give Smart  
This year’s ‘season of giving’ has been expanded by the events of September 11. Traditional year-end giving began much earlier, as the awareness of disaster-related need was the precursor to the local, national and international needs that typically flood the airwaves and newsprint in November and December. The unprecedented giving we have seen has been deep from within us as a response to fear, a reaction to ‘survivor’ guilt, or simply an expression of love. Our sensitivity is heightened; our emotions are closer to the surface and this state of being is likely to continue through the crescendo of the holidays, and perhaps beyond. Our hearts are touched by something we’ve read or heard, and we respond by giving.

Our gratitude for what we have stimulates the need to share. Our religion, or spiritual foundations, or feelings of universality remind us that none of us exist in a vacuum and that as sentient beings, we are aware of our uniqueness, and our responsibilities to others.

But what about our heads? Is giving diminished by applying logic and intelligence? I don’t think so. In fact, in my view, giving is enhanced when it is a conscious act. Giving by choice and with forethought can have more impact and become more strategic, and in many ways, more satisfying. That is not to say that we shouldn’t give impulsively when the “spirit moves us,” but we should not limit our response to the appeals in the mail or the bell-ringers. We should add another layer of giving, deciding where to give and how to give. Perhaps your Thanksgiving dinner conversations led to a family giving plan.

There’s another component to intelligent giving and that’s called leverage. If you itemize and can use a charitable deduction, think about ways you can make your gift for the lowest net cost by partnering with the IRS. The tax laws actually encourage giving in numerous ways, if you know the rules and use them. Here’s a quote directly from an IRS publication: “Our Federal Government recognizes that donations to religious, educational, charitable, scientific and literary organizations have contributed significantly to the welfare of our nation; and the tax laws are designed to encourage such giving.” In fact, there is pending legislation that will expand the opportunities to leverage your giving, but that’s for another column. For now, there are some things you need to know about making year-end, outright gifts.

If you are making gifts of used items, you must keep a log of what you are giving, and discount the value of the gift to reflect the depreciation and condition of the items. In this case, you, not the charity, determines the amount you claim. If the amount of the tangible personal property exceeds $5000, you must file a special form with the IRS and you may need an appraisal. Check with your tax advisor.

Be sure you get a proper receipt if you make a cash gift of $250 or more in order to qualify for a charitable deduction. This is true even if you write a check. The receipt must describe the gift and any benefit you may have received which diminishes the deductibility of the gift (such as the actual cost of the dinner at a fundraising gala.) Your tax savings will depend on your tax bracket.

If you have any appreciated stock, transfer the securities instead of selling the stock and writing a check. In this case, not only can you receive the charitable deduction, you can avoid capital gains.

At year-end, it is important to think about the timing of your gift, that is, in which tax year do you want to make the gift? You will probably want the tax deduction in the year you will have the higher income. However, since the tax rates will be lower in 2002, the deduction may be worth more in 2001. The charitable deduction applies in the year the gift is actually “delivered” to the charity, and the rules are very specific. The mail date, for example, is key (not the date the check was written.) If you use a credit card, the tax year is determined by the charge date, not when the bill is paid. If you transfer stock, delivery can be either when mailed, or when hand-delivered to the charity, although the recipient can, in some instances, be a third party agent. If timing is an important issue to you either make the gift early in December or check with your tax advisor.

Enjoy your holiday season, and partner with Uncle Sam. Use the tax laws to leverage your giving and give generously, with both your head and your heart.

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