Fidelity Charitable Suggests Strategies for Charitable Giving in an Uncertain Tax Environment
New Online Giving & Taxes Center Highlights Four Philanthropic Strategies to Fund Giving in 2012 and Beyond
Boston, November 8, 2012 — Fidelity Charitable, an independent public charity with a national donor-advised fund program, has launched an online Giving & Taxes Center to help financial advisors and donors as they consider the best approaches to funding charitable giving plans now and in the future. The center offers four strategies that can help donors make the most of the 2012 tax environment and prepare for potential tax changes in 2013.
If Congress does not act before the end of this year, the 2001 and 2003 tax cuts will expire, causing many taxpayers to face higher tax rates and see the return of an overall limitation on itemized deductions, among other changes. In addition, President Obama has proposed tax changes that if enacted could impact the tax advantages donors currently see for their charitable gifts.
"Donors care deeply about the causes they support, and understanding the tax environment can help them give even more to charity," said Sarah Libbey, president of Fidelity Charitable. "The tax rules could change in 2013, but the majority of the rules for 2012 are certain and there are steps philanthropists can take to maximize their giving now so they can meet their charitable goals this year and in the years ahead."
The four strategies that Fidelity Charitable suggests that donors and advisors consider for charitable giving in anticipation of potential changes to current tax laws are:
- Increase cash donations before deductions potentially lose value.
- Donate long-term appreciated securities to reduce taxes now and later.
- Accelerate income where possible to take advantage of today's tax rates.
- Build flexibility into charitable trusts to prepare for a potential increase in estate taxes.
For more information on these philanthropic strategies, visit:
About Fidelity Charitable
Fidelity Charitable is an independent public charity that has helped donors support more than 150,000 nonprofit organizations with over $13 billion in grants. The mission of the organization is to further the American tradition of philanthropy by providing programs that make charitable giving simple and effective. Established in 1991, Fidelity Charitable launched the first national donor-advised fund program. Through August 2012, investment options at Fidelity Charitable have generated an additional $1.8 billion available for charitable purposes, above the contributions received from donors.
Fidelity Charitable is the brand name for the Fidelity® Charitable Gift Fund, an independent public charity with a donor-advised fund program. Various Fidelity companies provide services to Fidelity Charitable. The Fidelity Charitable name and logo are service marks, and Fidelity is a registered service mark, of FMR LLC, used by Fidelity Charitable under license.
Information provided is general and educational in nature, and should not be construed as legal or tax advice. Fidelity Charitable does not provide legal or tax advice. Content provided relates to taxation at the federal level only, and availability of certain federal income tax deductions may depend on whether you itemize deductions. Rules and regulations regarding tax deductions for charitable giving vary at the state level, and laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy or completeness of the information provided. Charitable contributions of capital gain property held for more than one year are usually deductible at fair market value. Deductions for capital gain property held for one year or less are usually limited to cost basis. Consult an attorney or tax advisor regarding your specific legal or tax situation.