Year-End Tax Strategies
While the tax laws have changed, there are still many ways for you to reduce your 2019 taxes and make an impact at Notre Dame through your charitable gifts. Below are some specific strategies for you to consider for your year-end philanthropy.
In addition to the information provided below, you can learn more about charitable giving strategies under the new tax law by downloading our complimentary brochure, The Tax Cuts and Jobs Act of 2017, Strategies for 2019 Charitable Giving.
Gifts of Cash
Gifts of cash are tax deductible in the year the gift is made.
If mailing a gift by credit card, please mail by December 15 to allow adequate time for your gift to arrive before December 31. Credit card gifts received after December 31 must be processed as 2020 gifts. Please contact Donor Services at 574-631-5150 or email at firstname.lastname@example.org for any questions concerning cash gifts.
Gifts of Long-Term Appreciated Securities
Giving a gift of long-term appreciated securities is in most cases more tax advantageous than giving cash. This is because capital gains taxes are avoided on gifts of long-term appreciated assets.
For taxpayers that will not be able to itemize deductions in a given year, gifts of long-term appreciated securities are now an especially important tool in their tax reduction tool kit.
Please see examples below:
|Gift Amount||Stock Basis||Tax Savings from Avoidance of Capital Gains||Tax Savings from Charitable Deduction||Net Cost of Gift|
*Based on 33 percent marginal tax rate and 15 percent capital gains tax rate
In other words, the cost of your gift of $1,500 may be reduced to a net cost of $870, resulting from a savings of $135 in capital gains tax and, if you are taxed at a 33 percent marginal tax rate, an additional $495 in savings from the income tax charitable deduction.
How to Give Securities to Notre Dame
The simplest way to transfer securities, such as stocks, to Notre Dame is through a depository trust company (DTC) transfer. For more information on how to transfer securities or to make a gift of securities, please contact Lisa Kresnak at 574-631-9947 or email@example.com. Please have the following information available when you call:
- The name and type of securities to be gifted (public, restricted, mutual fund, etc.).
- The number of shares.
- The date you intend to make the gift.
Gifts that Produce Income
Charitable gift annuities and charitable remainder trusts may provide an opportunity for you to make a tax-efficient gift to Notre Dame while at the same time securing quarterly payments to yourself or loved ones. Many people have interest in the Charitable Remainder Trust program for its unique ability to leverage the Notre Dame Endowment to invest trust assets without fees. When you invest in a Charitable Remainder Trust with the Notre Dame Endowment, which has an average annualized return of 10.3 percent over the past 20 years, your gift will provide an income stream for your future while simultaneously offering an immediate income-tax deduction. And with an impactful gift to the University, you will grow your family’s Notre Dame legacy as well.
For information on charitable gift annuities and charitable remainder trusts invested in units of the Notre Dame Endowment, please contact the Office of Gift Planning at 574-631-7164 or pgiving.nd.edu.
IRA Charitable Rollover
If you are 70 ½ years of age or older and have a traditional Individual Retirement Account (IRA), you can use your required minimum distribution to give to Notre Dame through an IRA Charitable Rollover gift. To make an IRA Charitable Rollover gift to Notre Dame, contact your IRA custodian and ask that your distribution be a charitable rollover to Notre Dame and include your name and address in the transfer.
A corporate matching gift is an excellent way to increase the impact of your personal gift. By taking advantage of your employer’s matching gift program, you can arrange for an additional gift that can potentially double or triple the impact of your contribution. Detailed instructions for making a matching gift are available online. You may also contact us at firstname.lastname@example.org.
Thank you for all you do for Notre Dame.
The University of Notre Dame is an educational institution and does not provide tax, legal, or financial advice. Any document or information shared by our staff is intended to be educational. Notre Dame strongly encourages all of our benefactors to seek counsel from their own legal and financial advisors. Please know that any information or documents shared by Notre Dame cannot be used to avoid tax-related penalties. Past performance of endowment investments does not guarantee future performance.