Spring Term Information for Phillips Academy Families

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Students in the OWHL
December 01, 2021

Charitable giving strategies

Tax-smart ways to give in 2021

Each year, members of our Andover donor community ask how they can best maximize their charitable contributions.

Below are several giving strategies that you may wish to consider before December 31, with donations of any size greatly appreciated at the Academy:

► In a year when the stock market is achieving new highs, gifts of appreciated securities can be beneficial for your tax planning. Importantly, neither donors nor Andover have to pay the capital gains tax on the gifted securities when sold. Plus, donors receive a deduction for the fair market value of the stock, often reducing one’s taxable income for those who itemize.

► Leveraging donor advised funds (DAF) for philanthropy can also be a powerful choice. They can benefit current-use needs or, via DAF legacy gifts, provide resources for the Academy's future. Consider directing these charity-committed dollars before year-end to support the organizations you care about most.

► Donors age 70½ or older can direct charitable gifts or pledge payments from their individual retirement account (IRA) to Andover and avoid paying taxes on the withdrawal (known as charitable IRA or qualified charitable distributions). For those age 72 or older, IRA gifts of up to $100,000 per year can count toward the required minimum distribution—if made directly to the Academy.*

► Individuals who itemize their tax return can still claim a charitable deduction for 2021 cash gifts of up to 100 percent of their adjusted gross income. Individuals who don’t itemize can claim a $300 charitable deduction on their 2021 tax return ($600 for married individuals filing jointly) for gifts made to charities like Andover.

In addition to these options, donors are always welcome to make their annual gift at andover.edu/givenow.

Details on transferring securities, Andover’s tax ID, and more can be found on the Ways to Give site. If you have any questions or need assistance, please contact Director of Development Nicole Cherubini at 978-749-4288 or [email protected].

*Consult with a qualified professional regarding recent changes to IRA/QCD treatment and for specific counsel on your personal financial and retirement situation.

Categories: Philanthropy

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