If you’re making a charitable donation to your favorite nonprofit, make sure you’re eligible for an income tax deduction for the current year by meeting these important year-end deadlines.
Also, be sure to call the nonprofit organization to:
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- find out which assets/donations they can accept.
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- inform them of any assets you’re transferring or donations you’re sending, and
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- determine deadlines for acceptance and processing to meet tax deduction requirements.
They will truly appreciate it!
Important
Remember that some nonprofits have limited business hours over the holidays. Keep this in mind as you plan to meet year-end deadlines. Be sure to contact them as soon as possible to ensure that you receive a timely acknowledgment letter for tax year 2024!
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- Year-end gifts of appreciated stock should be made by Dec. 26, 2024 (some nonprofits suggest earlier), so that your broker has time to transfer the stocks and the receiving broker has time to value the stocks. (Do not sell the stock first, or you will be taxed on the gain!)
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- Credit card gifts made online or by phone must be completed by Dec. 31, 2024.
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- Checks sent via the U.S. Postal Service to any charity must be postmarked by Dec. 31, 2024.
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- Checks sent to charities via carriers such as UPS, FedEx and DHL must be physically received on or before Dec. 31, 2024. On the other hand, a check from an IRA that is meant to qualify for the charitable IRA “rollover,” or qualified charitable distribution (QCD) must actually clear the account by December 31.
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- Wire transfers of cash must be initiated no later than Dec. 28, 2024. Be careful with wire transfers. Some brokers or banks may not get it done timely.
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- Grant recommendations: Check with the intended charity, as processing times vary. Remember, grants from donor advised funds are not eligible for a charitable deduction.
Please remember to check with your advisor or CPA for exact details. The above is drafted to serve as a general guideline for year-end gifts and should not be relied on as legal advice.
