Important Giving Deadlines
Many choose to support Wellesley's mission through year-end gifts. Below are a few reminders to help ensure that your gift is credited to this calendar year:
- Checks must be postmarked on or before December 31. Please mail to: Development Office, Wellesley College, 106 Central Street, Wellesley, MA 02481.
- Credit card gifts made over the phone must be called in by 6:00 p.m. EST on December 31. Please call 781.283.2802.
- Credit card gifts made online must be submitted before midnight EST on December 31.
- Gifts of securities and wire transfers must be received in the College's account before 3:30 p.m. EST on December 31.
Year-End Giving Tax Tips
With a little planning, you may be able to take advantage of tax-saving giving strategies for your 2024 charitable gifts—or get a head start on saving in 2025. We offer tips you can use even if you don’t itemize deductions on your tax return.
If you have questions or want more information about any of the strategies below, please visit the Office of Gift Planning’s website or contact us at giftplanning@wellesley.edu or 781-283-3388.
“Bunch” your charitable gifts
If you don’t give enough to charity in a single year to switch from claiming the standard deduction to itemizing your deductions, consider “bunching” your gifts. Every other year, give larger gifts and itemize your deductions for that tax year. Then reduce your charitable giving and take the standard deduction in alternate years. Note that because the standard deduction tends to increase every year, you might want to itemize deductions in 2024 and claim the standard deduction in 2025. (2024 standard deductions are $14,600 for single filers and $29,200 for couples; they are slated to increase to $15,000 and $30,000 respectively in 2025.)
Wellesley’s fiscal year runs from July 1 to June 30, so you can maintain your loyal giving record by making two gifts in one calendar year and none the next. You can also use a donor advised fund to similar effect—make a larger contribution (and claim the charitable deduction) in a single tax year, then recommend grants from your fund over multiple future years.
Give appreciated securities
Giving appreciated securities such as stocks or mutual funds to charity lets you avoid the 15% to 20% capital gains tax owed on the increase in value when you sell the assets, allowing you to give a larger gift with a lower net cost. When you give to Wellesley, the College gets the full value of the securities free of tax liability—and you get a larger charitable deduction. Only give securities you have held for a year or more; the charitable deduction for gifts of short-term appreciated assets is limited to your cost basis.
If you don’t want to alter your portfolio’s holdings, consider a charitable swap. Give the appreciated securities, then immediately repurchase the shares with the cash you would have used for your charitable gift. Wellesley will receive a generous gift, and you will have increased your cost basis in the shares, reducing future capital gains taxes.
Be sure to contact your investment advisor now—most firms have strict deadlines for making security gifts before December 31. Year-end is also when investment advisors make portfolio changes to rebalance for diversification purposes, making this a perfect time to identify appreciated assets for gifting.
Sell depreciated securities and donate cash
If you have securities worth less than you paid for them, you can sell them and claim capital losses of up to $3,000 on your 2024 tax return. If your losses are greater than $3,000, you can roll the unused portion into future tax years. Donating the proceeds can net you additional tax savings if you itemize tax deductions.
Carry your charitable deduction forward
Charitable deductions are capped in a single tax year—you can deduct up to 60% of your adjusted gross income (AGI) for gifts of cash. Gifts of long-term appreciated property including stocks are subject to a 30% of AGI cap. If you made gifts of both cash and appreciated property, please consult your tax advisor for assistance calculating the cap on your charitable deduction.
If you gave more than your maximum allowable charitable deduction in 2024, you can use the standard carry forward of up to five additional tax years to fully claim your entire deduction.
Manage Your Retirement Accounts for Tax Savings
Give an IRA Qualified Charitable Distribution (QCD)
If you are over 70½, use the IRA QCD to make tax-efficient charitable gifts. Gifts made directly from your traditional IRA count toward your required minimum distribution (RMD) for 2024 (for those aged 73 or older) and your withdrawal is not reported as taxable income. Having a lower AGI will reduce your federal income taxes (even if you don’t itemize deductions) and may lower state income taxes, tax surcharges, and Medicare premiums. (You can make a QCD from a Roth IRA, but you’ll miss out on tax savings.)
You can give up to $105,000 to charity in 2024 via the QCD; if you’re married, your spouse can give the same amount. Be sure to initiate your gift with your account administrator by early December to ensure your gift is complete by the end of the year and counts toward your 2024 RMD—penalties apply if you haven’t taken your full RMD by December 31. To learn more about the rules and benefits of the IRA QCD, visit giftplanning.wellesley.edu/IRA-QCD.
Offset tax liability on a Roth conversion
Converting some or all of a traditional IRA or other tax-deferred retirement account to a Roth account can be a good financial strategy, providing tax-free growth and withdrawals for the future. Moving assets to a Roth account will create taxable income in the year of the conversion; an offsetting charitable gift can reduce that tax liability.
Plan Now for 2025
Many of these tax-savings strategies work best if you make a charitable giving plan early in the tax year. Whether you’re bunching your charitable gifts, contributing to a donor advised fund, setting up an automatic QCD gift from your IRA, or managing your investment or retirement portfolio, having a plan in place in January can help you maximize your 2025 tax savings while achieving your philanthropic goals.
Wellesley College does not provide tax or legal advice. We recommend you consult your own tax, investment, and legal advisors to determine if a gift strategy is right for you.