on't let the new year slip up on you without thinking about "Uncle Sam!" Year-end tax planning is of crucial importance for 2003. Your 2003 year-end gift can significantly reduce your income taxes while providing meaningful support for the College of Family and Consumer Sciences. Saving taxes is probably not the main reason you donate, however. You give because you care. Still, understanding the financial mechanisms can make your dollars go further, benefiting both you and the College. The charitable gifts you make now could leave you owing less on April 15, 2004. Consider making more charitable gifts in those years when you have the most income and are in the top income tax brackets. Often, it may be wise to accelerate planned future charitable gifts into the current year.

Example: If you are in a 33% income tax bracket in 2003, and you itemize deductions, a $1,000 gift to the College by December 31 will save you $330 in 2003.

As always, we urge you to discuss tax planning with your financial planner. Consider exploring the following options:

Stock Gifts: Avoiding Capital Gains If you own stock, it is almost always smarter to contribute stock than cash. First, you avoid paying any capital gains tax on the increased value of the stock. Second, you receive an income tax charitable deduction for the full fair market value of the stock at the time of the gift.

Example: If you purchased stock years ago for $1,000, and it is now worth $10,000, a gift of the stock to the College would result in a deduction of $10,000. In addition, there is no capital gains tax to you on the $9,000 of appreciation. UGA can work directly with your broker to make this easy transaction occur in a timely manner.

Life Insurance Gifts: Another Smart Alternative: Many people are over-insured. Have you considered gifting a policy that you already own to the UGA Foundation for the College of Family and Consumer Sciences? You could also purchase a new policy. In order to
 

receive the charitable deduction, you would need to designate the College as both the owner and beneficiary.

Example: Ms. Dawson Hall owns a $250,000 life insurance policy with a current cash value of $75,800. If she donates that policy to UGA in 2003, she will receive a charitable deduction in the amount of $75,800. If Ms. Hall continues to pay the premiums on this policy each year, the amount of each premium is deductible annually.

Real Estate Gifts: Donate your home and live in it too! Many of us have appreciated real estate just as we have appreciated stocks. Real estate can be gifted just as stocks can to avoid capital gains tax. The full market value of the real estate is your charitable deduction. A life estate gift allows you to continue to live in or exclusively use the real estate until your death. This has further benefits of lowering your estate threshold.

Example: Mr. Bulldog, age 70, donates his Naples, Florida, condo to our College, reserving a life estate for himself, thereby continuing to use it as his own until his death. The condo has a fair market value of $250,000. Depending on certain variables, his current tax deduction would be approximately $145,000 and the $250,000 asset would be removed from his estate.

Cash: Simple and easy! Although it can be a rewarding challenge to pay lower taxes through creative giving, it is still often easier to simply write a check to: The UGA Foundation and designate it for FACS. Be sure and postmark your donation or deliver it by December 31, 2003. This will ensure that your gift will be receipted to you for this tax year, even if we don't receive it until 2004.

Your gifts to FACS are much more meaningful than charitable deductions and tax brackets. I am available to help you think creatively about how you may maximize your giving for 2003. Feel free to contact me if any of these strategies appeal to you. I look forward to helping you help others.