NEW LAW: Special rule for contributions in 2020 only!
For cash contributions you make in 2020, you are allowed to deduct up to 100% of your adjusted gross income. And, even if you do not itemize your deductions in 2020, you still can reduce your taxable income by up to $300 to offset cash contributions. Learn more about the CARES Act.
An outright gift is the simplest of all gifts to make and provides Fenway School of Psychology with the greatest and most immediate support. Most donors make outright gifts by writing a check, but outright gifts of other kinds of assets are certainly possible.
An outright gift could be right for you if:
- You have cash or other assets that you want to donate
- You want the largest possible tax deduction for your gift
- You would like to make a gift to FSP that has the greatest immediate impact
How it works
You transfer cash, publicly-traded securities, or other assets directly to FSP and you receive an income tax deduction.
What is an outright gift of cash?
An outright gift of cash is when you transfer funds to Fenway School of Psychology and get nothing of financial value in return. The most common way for donors to make an outright gift is to write a check payable to Fenway School of Psychology.
Gift provides immediate support
Unlike some other gift arrangements, your outright gift will provide resources that FSP can put to immediate use. If you prefer to restrict our use of your gift in any way, please contact us so that we can be sure that we can carry out your wishes.
Maximum tax savings
You may deduct the full amount of your donation up to 60% of your adjusted gross income, providing tax savings if you itemize. You may carry forward all of your unused deduction for up to five additional years.
Ways to give cash
Most donors make an outright gift by writing a check payable to Fenway School of Psychology and mailing it to us. You may also make a cash gift using your credit card.
It is easy to make an outright gift using publicly-traded securities. The amount of your deduction will depend on how long you have held your securities.
If you have held your securities for more than 12 months, you will be able to deduct their full value up to 60% of your adjusted gross income. If you have held your securities for 12 months or less, you will be able to deduct either their current full value or what you paid for them, whichever is less, up to 60 % of your adjusted gross income. Either way, you may carry forward all unused deduction for up to five additional years.
If your securities have decreased in value while you have owned them, you will save more taxes if you sell the securities first and then donate the proceeds.
Susan McNeil would like to make an immediate $15,000 gift to Fenway School of Psychology. Susan could write a check for this amount and earn a charitable deduction equal to $15,000. Alternatively, Susan could make a gift using her credit card by calling us on the phone, responding to a mailing, or by donating online through our website. Gifts of checks and gifts made via credit cards are considered cash gifts.
- Susan may deduct up to 60% of her adjusted gross income for her gift of cash, providing tax savings if she itemizes.
- If Susan itemizes deductions but cannot use the entire deduction in the year of gift, she may carry the balance forward for up to five additional years.
- Assuming Susan itemizes deductions and can use her entire income tax charitable deduction of $15,000, she will save her $5,550 (37% tax).
- Susan will gain the satisfaction of making a $15,000 gift to FSP.