Tax wise giving

With the end of the year approaching, now is a great time to consider those benefits in light of your own philanthropic and financial goals. Whether you contribute cash, appreciated securities, or mutual funds, your support will impact the lives of Seton Hall Law students. We want to remind you of important tax-saving options to charitable giving. These may be useful strategies as we near year end and are looking for tax-reduction measures.

Giving Cash

A gift of cash can maximize your charitable deduction and confer immediate benefits to Seton Hall Law. You can make a gift online, or by mailing your check to

Seton Hall Law
Office of Alumni & Development
c/o Bank of America
P.O. Box 419852, Boston, MA 02241

Giving Appreciated Securities

A gift of appreciated stock (securities) may allow you to make a larger gift than you thought possible. If your securities have appreciated in value, you have the opportunity to avoid the capital gains tax that otherwise would apply to that appreciation if the securities were sold. You also may be eligible for an income tax charitable deduction for the full fair market value of the securities. With the tax savings, the “cost” of your gift to Seton Hall Law may be much less than the actual value of the gift you are able to make—which may make this form of giving all the more appealing.

 

	Sell Securities and Give Proceeds	Give Securities Directly
Current Value of Securities	$20,000	$20,000
Cost Basis	$5,000	$5,000
Capital Gains Tax @ 15%	$2,250	$0
Net Gift After Capital Gain Tax	$17,750	$20,000
Personal Tax Deduction at 35%	$6,213	$8,750
Tax Savings	$3,963	$8,750

Charitable IRA Rollover

H.R. 2029, the Protecting Americans from Tax Hikes Act of 2015 permanently extended the IRA Charitable Rollover. Originally passed in 2006 as part of the Pension Protection Act, the IRA Charitable Rollover allows individuals age 70½ and older to make direct transfers totaling up to $100,000 per year to 501(c)(3) charities, without having to count the transfers as income for federal income tax purposes. Transfers must be made directly from a traditional IRA account by your IRA administrator to Seton Hall Law School. Funds that are withdrawn by you and then contributed do NOT qualify. Gifts from 401k, 403b, SEP and other plans do not qualify. This Required Minimum Distributions are not included in your income for the year.

 

	Taking RMD and gifting proceeds	Directing RMD to SHU Law
Current Value of RMD	$25,000	$25,000
Income Tax withheld @ 35%	$8,750	$0
Net value to gift to SHU Law after tax	$16,250	$25,000

Because security delivery instructions are dependent on the asset being gifted, how it is held, how it can be transferred, and the current federal, state, and local privacy statutes, please contact the Office of Alumni and Development at 973-642-8711 or [email protected] for assistance on any assets being transferred to the Law School. Transfer instructions available here.

Regardless of the type of gift you make, you may be able to double (or even triple) the impact of your contribution by taking advantage of a matching gift program. To find out if your employer matches gifts to higher education, contact your human resources department.

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Office of Alumni and Development
[email protected] | 973-642-8711