The holidays are a time to think of the people who are important to us. It is a time to say thanks through giving. The same applies to our favorite charities. It’s a time to think of their importance in our lives, how they enrich us or build stronger lives and communities. I hope you’ll consider how art and SpivaCenter for the Arts improve the quality of your life and that of your community.
While holiday giving may be our way of saying thank you, there are also tax benefits that come with it. Now is the time to consider how those tax incentives can reduce your taxes for 2012. Acting now is particularly important considering the federal government’s proposed changes in itemized tax deductions in 2013. If the changes occur, your deductions next year will lose value, compared with giving by December 31 of this year.
Under Congressional consideration is a proposal to cap itemized deductions for higher wage earners. The proposal would limit the value of itemized deductions – including those for charitable giving – by capping the eligible deduction at 28% for couples with incomes over $250,000 and for individuals with incomes over $200,000. Currently, there is no cap on itemized deductions. This translates to thousands of dollars in tax savings this year, compared with next year. That’s a good incentive for charitable giving before the end of 2012.
If you want to maximize this year’s tax advantages, consider a gift to Spiva’s annual fund drive, Spivathon, which is currently underway. Spivathon funds are set aside for general operations, the day to day expenses that can exceed the income brought in by memberships, gift shop sales, grants, art sales, or exhibit sponsorships.
Spivathon contributions may be made in cash, with a credit card, or simply by mailing a check to SpivaCenter for the Arts, 222 W. Third St., Joplin, MO 64801. Be sure to note that the contribution is for Spivathon 2013. An acknowledgment of your contribution will be returned for verification when filing income taxes.