As a year nears its end, a number of time honored practices contribute to a unique spirit almost everywhere you turn. Some of these traditions have a measurable impact on the future.

Our federal government recognizes the value of our country's charitable giving tradition and provides some significant tax benefits for making a gift to a qualified charity.

There are a number of ways in which a gift may be made-- one designed to meet virtually any situation. Here are a few ideas that may help as you consider how you might participate in this year end tradition.

Cash is still the most popular way to make charitable gifts. And your gift of cash to a qualified charity prior to December 31 could cost you much less at tax-filing time.

For example, if you make a $2,000 gift before December 31 and are in the 25% tax bracket, your gift could save you $500 in taxes.

A gift of	Will actually cost you	Will save you
$ 1,000	$ 750	$ 250
1,500	1,125	375
2,000	1,500	500
2,500	1,875	625
5,000	3,750	1,250
10,000	7,500	2,500

Gifts of securities or stock can be one of the most advantageous ways of giving. If your gift of stock is one you have owned for more than one year, you may deduct the full fair market value of the stock as a charitable contribution, while bypassing applicable capital gains taxes if the stock has appreciated.

Gifts of appreciated real estate are like gifts of appreciated stock. Assuming you have owned the property for more than one year, you may deduct the fair market value as a charitable contribution while bypassing all capital

Life insurance is a unique way to give to charity. To qualify, the charity needs to become both owner and beneficiary; no incidents of ownership can be retained.

If the policy is paid up, your charitable contribution is generally the replacement value or cost basis of the policy, whichever is less. Ongoing premiums paid on a gifted life insurance policy also qualify for charitable deductions.

Gifts of tangible personal property related to the charity's exempt purposes are fully tax-deductible at fair market value. Gifts of tangible personal property given to charity which are not related to its tax-exempt purposes are limited to cost basis for determining your tax deduction.

The unitrust provides a unique way to give-- offering substantial tax savings while providing an additional benefit: annual income to you or your family.

The unitrust is funded with an asset-- appreciated property or securities are usually best. Within the unitrust, the assets can be sold and the proceeds reinvested to produce a greater yield for the donor(s) or beneficiary(s).

The income stream is a fixed percentage (not less than 5%) of the net asset value of the trust, which is revalued at least annually. As the value of the trust increases, so does the income payout, providing a hedge against inflation.

With a gift annuity, you and/or someone you designate receive fixed payments for life at an attractive rate, based on your age(s). You may also defer the payments until a future date; this usually provides greater annual income. You get a tax deduction the year the gift is made, plus tax-free return of principal. Applicable capital gains tax is deferred if the annuity is funded with appreciated assets. Part of your gift helps the organization right now.

Many of us look at the charities we believe in and dream of what we might do; in the words of the song, "...if I were a rich man."

The truth is that the tradition of charitable giving-- an American tradition unparalleled by any other society-- and the impact of charitable organizations on our society is based on a "grassroots" participation.

And, though most of us may never be "rich" in the sense in which that word is typically used, each of us can be a philanthropist.

By taking advantage of the current tax laws which encourage and support gifts to qualified charities, each of us is able to make every dollar work a little harder as we perpetuate one of our greatest traditions.

We will be pleased to provide more information and assist in any way possible as you consider your participation in this celebrated tradition. Our assistance is provided with no cost or obligation and is completely confidential.

If you would like to speak with someone at our Agency about making a year-end gift, please call 610-566-7540, ext. 228, and ask to speak with Trish Fulvio, Development and Communications Consultant. You may also send an e-mail message to Trish by clicking on this link: pfulvio@fcsdc.com

This information is provided solely for educational purposes. For specific recommendations, each person should consult his or her own qualified professional advisor.

The official registration and financial information of Family and Community Service of Delaware County may be obtained from the Pennsylvania Department of State by calling 1-800-732-0999. Registration does not imply endorsement.