Berkshire Country Day School’s fundraising efforts follow the school year timeline.  Our “year-end” isn’t until June 30, but we still like to honor the calendar year-end with an extra fundraising push (hint, hint: you will be getting emails) because it can be advantageous to many donors to give before December 31.  In that vein, here is some simple advice on ways to give while saving tax dollars.  The following information was adapted from a Vanguard Charitable giving website.

Make a cash gift. Monetary donations (whether by check or credit card) directly to charities are the simplest and most common form of charitable giving, and cash gifts to nonprofit organizations are often tax-deductible. The amount of tax savings depends on your tax bracket. For example, if you’re in the 35% top marginal tax bracket, a $100 gift may reduce your taxes by $35 ($100 × 35%).

Give appreciated securities. Another tax-savvy way to make charitable gifts is to donate appreciated securities to a qualifying charity. Examples include stocks, bonds, or mutual fund shares that have appreciated in value and that you’ve owned for more than one year. When you make a qualifying donation of appreciated securities, you may take a full tax deduction for the market value of the investment and avoid paying taxes on the appreciated value.

For example, if you paid $300 several years ago for stock that’s now worth $1,000 and you’re in the 35% tax bracket, your direct tax savings would be $350 ($1,000 × 35%). You’d also avoid the capital gains tax that you’d otherwise have paid on the investment, for an additional savings of $105 (15% capital gains tax rate × the $700 gain). (Learn more about these types of charitable donations in IRS Publication 526.)

Of course these rules are true for all charitable giving, but we hope Berkshire Country Day School will be included in your year-end giving plans.  Your donations will help our teachers continue inspire the promise of every student so that each may become an exemplary citizen of the world.

If you have questions about giving to BCD, please call Amy Elmore at 413-637-0755 x115.