For release: December 6, 2012|
Amy Kilgore 330.344.6014, firstname.lastname@example.org
Jim Gosky 330.344.6083, email@example.com
Another year is coming to a close, and tax season will soon be upon us. Americans have always been generous with their charitable giving, even during tough economic times such as what we have experienced over the last few years. There are many ways one can make a gift. As you contemplate your charitable giving, Akron General Foundation wants you to keep these rules in mind so that you can get the full tax benefit from your generosity.
According to Richard H. Harris, III, vice chair of the Board for the Akron General Foundation, and chair, Estate Planning and Probate Practice Group at Brouse McDowell, one of the simplest ways to make a charitable gift is to write a check to your favorite charity, being mindful that the charity will have time to cash it before the end of that year. Be sure to keep written documentation of the deduction (how much you donated) for your taxes. Another way to give to charity is to donate non-cash items in good condition like used clothing and furniture; your tax deduction is equal to what the items would sell for in their present condition. However, if you want to claim a deduction in excess of $500.00 additional documentation will generally be required. Taking photographs of the donated property may be helpful to substantiate its current market value. For more valuable items such as artwork, an appraisal will be required.
Time spent volunteering your services at Akron General (or other charities) is not deductible, but the miles driven to the charity to volunteer your time are deductible as well as any out-of-pocket expenses incurred as a volunteer. In 2012, you were able to deduct 14 cents a mile for charitable work.
Giving appreciated property such as stocks and bonds to a charitable organization like the Akron General Foundation is a great way to make your charitable gift. You can avoid paying long-term capital gains tax on the stock by simply donating the shares to the hospital instead of selling the shares yourself, paying the tax on the appreciation, and writing a check to the Foundation using the proceeds from the sale. You get the charitable deduction based on the value of your stock donated but without having to pay the capital gains tax on the appreciation. For most taxpayers, the limits imposed by the IRS on charitable deductions of appreciated property will not be a factor. If your gift of stock is left at your death as a bequest, there are no limits on the amount of your deduction for estate tax purposes.
There are still more ways to give. If you have an old, paid-up life insurance policy that you no longer need, consider donating it. You will get a charitable deduction based on the lesser of your cost basis in the policy or its current value. You can even gift your residence to a charity while retaining the lifetime use of the property. Finally, it should be mentioned that this is a great time as a result of very low interest rates for using more sophisticated charitable giving devices such as a charitable lead trust to make a more substantial charitable gift.
For more information and assistance in making a gift to Akron General, please contact Karen Bozzelli or her staff at the Foundation at 330-344-6888 or via email at Karen.Bozzelli@AkronGeneral.org. For more information about ways to give to Akron General, please visit akrongeneral.org/giving.
About Akron General Health System
Akron General Health System is a not-for-profit healthcare organization with the mission of improving the health and lives of the people and communities it serves. Akron General Health System includes: Akron General Medical Center, a 511-bed teaching and research medical center, and Edwin Shaw Rehabilitation Institute, the area’s largest provider of rehabilitation services; Akron General Partners, which includes Partners Physician Group, the Akron General Health & Wellness Centers, Lodi Community Hospital, Community Health Centers and other companies; Akron General Community Health Ventures, which includes Visiting Nurse Service and Affiliates, the largest and most comprehensive provider of home healthcare services in Ohio; and Akron General Foundation. Recently, U.S. News & World Report ranked Akron General Medical Center as the seventh best hospital in Ohio and Becker’s Hospital Review named Akron General Medical Center one of the nation’s top 100 hospitals. For more information about Akron General Health System, visit www.akrongeneral.org.
Circular 230 Disclaimer
The information in this news release is a general discussion of relevant federal tax laws. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. This information is provided to support the promotion or marketing of ideas that may
benefit a taxpayer. Taxpayers should seek the advice of their own tax and legal advisors
regarding any tax and legal issues applicable to their specific circumstances.