Tax Benefits for End of Year Charitible Contributions

On September 23, 2005, President Bush signed into law new tax incentives for charitable gifts. Many of the new provisions relate to Hurricane Katrina relief, but Congress also included additional incentives to help support all charitable organizations. These new provisions may offer you a terrific opportunity and benefit. Prior to the enactment of the new law, a donor could contribute to charitable organizations (1) cash up to 50 percent of his or her adjusted gross income or (2) long-term capital gain property (e.g., stocks, real estate held for more than one year) up to 30 percent of his or her adjusted gross income. Under the new law, Congress has eliminated the 50 percent cap on the deductibility of certain charitable contributions. Now, a donor may contribute and deduct gifts up to 100 percent of his or her adjusted gross income if the gift is made: In cash (gifts of property such as stocks and real estate do not qualify). Between Aug. 28, 2005, and Dec. 31, 2005, and To a charitable organization whether or not the charitable organization is engaged in Katrina relief efforts. (This includes Hawken School but excludes gifts made to charitable remainder trusts, donor advised funds, private foundations, and supporting organizations.) If you`re considering making end of the year gifts, then we hope you`ll consider giving to Hawken School through the annual fund. This year`s Annual Fund campaign offers you the chance to thank a Hawken teacher or coach who has made a difference in your life. Click here to learn more and to make a contribution.