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www.privateairny.com Private Air New York | Fall 2016 47 By: Eric Meermann WAYS TO GIVE - FROM STRAIGHTFORWARD TO CREATIVE W ith the right charitable-giving strategy, you can do the best and get the biggest tax deductions. e best method can be as simple as giving cash or as creative as a setting up a trust. It all depends on your situation. Give more when you make more. For instance, if you get a large bonus in 2016 that would push you into a higher federal tax bracket, give more this year than next, when you expect your income to be lower. From simple to complex, here are ways you can give. Cash. If you itemize, you can deduct cash gifts to public charities up to 50 percent of your adjusted gross income (AGI) during any tax year. Don't use paper money; give cash via a check or credit card because you'll need proof if you're ever challenged by the IRS. If you give $250 or more at any one time, you'll also need a letter or receipt from the charity showing the date and the amount you gave. Appreciated securities. You can donate appreciated shares of stock, mutual funds or other publicly traded securities directly to the charitable organization. e donation limit on securities is lower: 30 percent of AGI annually.* is is a powerful strategy because it accomplishes both income-tax- planning and charitable objectives. Suppose a stock you bought years ago for $2,000 is now worth $10,000. You would have an $8,000 gain that you would pay capital gains tax on if you sold the shares and gave the cash to charity—a bad idea. Instead, you can give the shares directly to the charity, pay no gains tax and get a $10,000 tax deduction. It's usually simple to arrange this through your broker holding the securities. If you have a security with a loss you want to get rid of, do the opposite. Sell it first and take the capital loss. You can donate the proceeds to charity and take a deduction just like any other cash contribution. Securities to a donor-advised fund. Suppose you're not sure which charities you wish to support or you want to spread your donation over time. Consider giving securities to a donor-advised fund. is is a charitable-giving vehicle that lets you make an irrevocable tax- deductible contribution. Your money then grows tax-free inside the fund. At any time, you can recommend distributions to qualified charitable organizations—and make them anonymous if you prefer. Many companies, such as Fidelity Investments and Vanguard, run simple and easy-to-use donor-advised funds at low cost. For most people most of the time, giving cash and/or securities is the simplest, best method. But for a few, it makes sense to consider a trust or a foundation. GIVING TO CHARITY: RIGHT STRATEGY LETS YOU DO THE MOST GOOD PHILANTROPHY

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