Your gift, your gain

While December may signal snow, Santa and the inevitable countdown to the NFL playoffs, it’s also the time to consider giving to receive, as in a tax deduction.

Even if you love the holidays as much as anyone, and often find yourself stuffing dollar bills into bell ringer’s kettles, be practical: January 2015 is looming. Soon after Rudolph’s red nose fades away, it will be time to tackle the dreaded tax return. And one way to ease the pain is to maximize your deductions. This late in the game, the easiest way is by making donations to your favorite nonprofits.

So how do you get the most bang for your charity buck at year’s end?

Start by ensuring that you give to a qualified organization, recognized by the Internal Revenue Service as a 501(c)(3). That means the group has jumped through all the proper governmental hoops and files the proper annual paperwork. You can also check out a charity on give.org, the Better Business Bureau’sWise Giving Alliances website.

Also, you must itemize your donations on Schedule A of the 1040 form. “For every dollar you list as a charitable donation, you get an equal dollar deduction,” says Denverbased CPA Ann Hinkins, who works with nonprofit organizations.

If you have non-cash assets such as stock or land that have greatly appreciated in the last 12 months, you are able to donate them at fair market value and don’t pay the year’s capital gains. For example, say you paid $1,000 for stock that is now worth $5,000. You can donate it, deduct the current $5,000 value and avoid paying capital gains earned in 2014.

Another way to boost your donation is through matching dollars or similar incentives. Check with your employer to see if it has a matching gift program. Season To Share, run