Year-End Tax Strategies

As the end of the year approaches, it may be advantageous for you to consider these tax-saving strategies for your philanthropic giving:

Gifts of Cash
Gifts of cash are tax deductible in the year the gift is made.  How to make gifts of cash via credit card or personal check.  How to make a gift by wire transfer.  Note that 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 2017 gifts.  Please contact Donor Services at 574-631-5150 or email at givegift@nd.edu for any questions concerning cash gifts.  

Gifts of Securities
A gift of publicly traded securities can be one of the most advantageous ways of giving.  A gift of securities held for over one year, such as stocks, generally generates an income tax deduction at the market value of the securities, regardless of the price paid or basis of the securities.  Moreover, the capital gains tax is avoided through such a gift.

Please see examples below:

Gift Amount Stock Basis Tax Savings from Avoidance of Capital Gains Tax Savings from Charitable Deduction Net Cost of Gift
$1,500  $600 $135 $495 $870 
$5,000  $2,000 $450  $1,650 $2,900

*Based on 33 percent marginal tax rate and a 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 (or 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 ekresnak@nd.edu.  Please have the following information available when you call: (1) the name and type of securities to be gifted (public, restricted, mutual fund, etc.), (2) the number of shares, and (3) the date you intend to make the gift.  Complete instructions on making a gift of securities.  Please note that U.S. stock markets will be closed on December 26, 2016 in observance of Christmas.  US stock markets will also not be open on December 31, 2016 which is a Saturday.

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 the unique ability to leverage the Notre Dame Endowment to invest trust assets without fees.  By investing in charitable remainder trust with the Notre Dame endowment, which has an average annualized return of 11.2 percent over the past 20 years, your gift will provide an income stream for your future while at the same time growing your family’s legacy at Notre Dame through an impactful gift as well as an immediate income-tax deduction.  For information on charitable gift annuities and charitable remainder trusts invested in units of the Notre Dame endowment, please visit nd.giftplans.org, or contact Greg Dugard in the Office of Gift Planning at 574-631-6369 or gdugard@nd.edu

IRA Charitable Rollover
If you are 70 ½ or older and have a traditional Individual Retirement Account (IRA), you can use your required minimum distribution to support 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.

Matching Gifts
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 matching@nd.edu.

Thank you for your tremendous support of 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 advisers.  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.