Wrapping up 2023 with tax savings

Author: Andrew Owens

Mc 11

For many, charitable giving is an important practice every December, as routine as office Christmas parties, wrapping presents, and baking cookies.

There are important considerations associated with calendar year-end charitable giving that benefactors should know. Giving by December 31 not only has the benefit of ensuring that the impact will be felt at Notre Dame next year but also can unlock some savvy tax strategies.

In order to claim a deduction on a 2023 tax return, charitable gifts must be made by the end of the calendar year. Checks must be postmarked by December 31, online gifts must be entered by then, and wire transfers or securities must be received by that date.

When considering how to make a year-end donation, there are significant tax benefits to making a gift of securities rather than cash. Securities held for more than a year are generally deductible at market value, rather than what was originally paid for them. A benefactor would also avoid paying the capital gains tax that would be due if the stock were sold.

Outside of tax implications, another important reason to prioritize giving by December 31 is that eligibility for the 2024 Notre Dame Football Ticket Lottery is determined by calendar year 2023 giving.

Benefactors who routinely give to the University and other qualified charities might consider establishing a Notre Dame Donor Advised Fund (DAF) to leverage the success of the Notre Dame Endowment. A benefactor establishing a DAF would receive an immediate income tax deduction for this year and the funds would be invested for tax-free growth. This approach would also allow for a larger charitable deduction, which can be particularly helpful in a high-income year. By establishing a DAF, benefactors retain the flexibility to determine when and where to make charitable contributions.

So this December, think not only about the incredible impact that can be ensured by giving to Notre Dame but also about the tax-saving opportunities there could be by making a gift before the calendar flips to 2024.

If you have questions about how to further your tax savings please feel free to reach out to our Office of Gift Planning at pgiving@nd.edu.

Indiana College Credit

If you are a resident of Indiana, you may be eligible for the Indiana College Tax Credit by making a gift to the University of Notre Dame!

  • For an individual filing a single return, get a 50% tax credit for each dollar given to Notre Dame, up to $100.
  • For individuals filing a joint return, get a 50% tax credit for each dollar given to Notre Dame, up to $200.