The Jewish Foundation of Greater New Haven can assist you in fulfilling your philanthropic visions while preserving your financial security or that of your loved ones.

Earn Income and Reduce Your Taxes
You can turn your appreciated assets into a guaranteed annual income stream for you and/or your named beneficiary. Often, you can receive part of the income tax-free, reduce or eliminate your capital gains for the donated property, and receive a current charitable income deduction.

Create a Personal Legacy
Designating the Jewish Foundation as a beneficiary of your will, trust, retirement plan, or life insurance policy is a simple and powerful way to create a family legacy. During your lifetime, your assets are not affected and you reduce your taxable estate.

Create a Charitable Retirement Account
Donating property that creates a Deferred Gift Annuity allows you to lock in a fixed income stream. Your benefits will begin at a designated future date, and you will be entitled to a current income tax deduction.

Protect Your Retirement Assets
When a retirement plan (401k, 403b, IRA or pension plan) is left to non-charitable heirs (other than a spouse), the combined income and estate taxes can be as high as 75%. When retirement plans are left to a charity and other assets are left to your heirs, there are significant tax savings, and the amount passing to your heirs can be maximized. In addition, in 2006 and 2007, those 70½ and older may rollover up to $100,000 from a retirement account to charity.

Reduce Capital Gains Taxes
When you donate long-term appreciated property to a charity, you can reduce or eliminate the capital gains tax for that property and receive an income tax deduction for the appreciated value of the property. In addition, with some planned giving vehicles, you can receive an income stream in exchange for your donation.

Additional Tax Tips for Giving
- Donate before December 31 to ensure your charitable deduction for this tax year.

- Donating long-term appreciated securities outright entitles you to double tax benefits:
- You are allowed an income tax charitable deduction for the full fair market value (FMV)
of appreciated securities that have been held for at least one year (or for your cost basis if they have been held for less than one year).
- You pay no capital gains tax on the transfer.

Charitable gifts are generally deductible up to 50% of your adjusted gross income (AGI) for cash and non-appreciated property, and 30% of your AGI for gifts of appreciated securities (stocks, bonds, mutual funds). You may, if necessary, take unused deductions of this kind over the next five years, subject to the same 50% or 30% limitation.
More and more taxpayers are discovering that their basic itemized deductions (i.e., deductions for mortgage interest, property and state taxes) are being reduced due to Alternative Minimum Tax (AMT). Charitable donations of non-appreciated assets (i.e., cash) are not subject to AMT!

For more information contact, Lisa A. Stanger, Esq., Director of the Jewish Foundation of Greater New Haven, 387-2424 x382, lstangeewishnewhaven.org