Wrapping up 2023 with tax savings

For many, charitable giving is an important practice every December, as routine as office Christmas parties, wrapping presents, and baking cookies.

There are important considerations associated with calendar year-end charitable giving that benefactors should know. Donating by December 31 not only guarantees that the impact will resonate at Notre Dame in the coming year but also opens the door to employing savvy tax strategies.

Here are a few things to keep in mind:

• In order to claim a deduction on a 2023 tax return, charitable gifts must be made by the end of the calendar year. Checks must be postmarked, online gifts must be entered, and wire transfers or securities must be received – all by December 31.

• When considering how to make a year-end donation, there are significant tax benefits to making a gift of securities rather than cash. Securities held for more than a year are generally deductible at market value, rather than what was originally paid for them. A benefactor would also avoid paying the capital gains tax that would be due if the stock were personally sold.

• Benefactors who routinely give to the University and other qualified charities might consider establishing a Notre Dame Donor Advised Fund (DAF) to leverage the strength of the Notre Dame Endowment. A benefactor establishing a DAF is eligible for an immediate income tax deduction equal to the full value of the contribution (particularly helpful in a high-income year) and the funds are invested for tax-free growth. By establishing a DAF, benefactors retain the flexibility to determine when and where to make charitable contributions.

• Outside of tax implications, another important reason to prioritize giving by December 31 is that eligibility for the 2024 Notre Dame Football Ticket Lottery is determined by calendar year 2023 giving.

This December, consider making a gift before the calendar flips to 2024 to not only have a significant impact at Notre Dame, but to benefit from these valuable tax-saving opportunities.