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“For it is in giving that we receive.” — St. Francis of Assisi. 1182-1226.

Have you heard the rumor that we’re expecting a cold snap in Southwest Florida sometime soon, wind-chill factors and everything!

Cold snap, cold front, arctic air, all of these terms took on new meaning during our first winter here. While sitting on the lanai, I’d call my northern friends and tauntingly ask them how the weather was. Watching the Weather Channel and seeing the snowstorms, I knew exactly how their weather was, I was just plain evil.

The weather this time of year is why we live in Florida. Opening the windows and letting in the fresh air, switching over to “winter” clothes, and a thorough “spring cleaning” of the house are seasonal rituals. Clearing out closets of what we don’t use and donating it to charity is a familiar year end activity. Not only do I make room for new things, there’s the potential bonus of tax deductions for the used items too.

As the end of the year approaches, you may be thinking about how to reduce your income taxes. Depending on our tax bracket and whether or not you itemize, you may be able to lower your tax bill — possibly significantly — by making a charitable contribution. There are several alternatives that may significantly lighten your income tax burden while supporting your favorite charity or non-profit organization.

For example, if you are in the 25 percent tax-bracket and itemize, a gift of $1,000 could represent a tax savings of $250. It generally makes sense to try to make multiple and/or more sizeable charitable contributions in the years you have the highest income or more highly-appreciated securities. You may even consider making advance contributions if your income is expected to drop in the next year or two.

If you contribute securities held for more than one year, you avoid paying long-term capital gains tax on the appreciated portion of their value. Gifts can also reduce estate taxes, since the value of your estate has decreased equal to the amount donated.

If you itemize, you can make the simplest kind of charitable contribution — and lower your 2007 income taxes — with a cash gift postmarked by Dec. 31, 2007. Because gifts of cash to public charities are fully deductible — up to a maximum of 50 percent of your adjusted income — they are a great way to make a contribution.

While gifts of cash are simple to make and fully deductible, gifts of securities are frequently the most advantageous donation from a tax perspective. Contributing long-term, appreciated securities allows you to avoid paying capital gains tax. In addition, you still receive an income tax deduction equal to the full fair market value of the security at the time it is contributed.

Gifts of long-term, appreciated securities are fully deductible up to a maximum of 30 percent of your adjusted gross income. For example, you own stock that you purchased for $5000 and the current value has increased to $25,000. You can gift the stock to a charitable organization and so they receive $25,000, your charitable deduction is $25,000 and you’ve avoided capital gains tax on the $20,000 gain.

Because everyone’s tax situation is unique, you should discuss your gift plans with a financial advisor and tax professional before making any contributions.

Contributing gifts of cash or appreciated stock can meet your philanthropic goals and help reduce your income tax burden.

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This article is provided by Darcie Guerin, Financial Advisor & Branch Manager, Raymond James & Associates, Inc. located at 606 Bald Eagle Drive, Suite 401, Marco Island, and FL 34145. If you have questions please contact Darcie Guerin via email at Darcie.Guerin@RaymondJames.com. Phone (239)389-1041, toll free (866)-343-0882 or at www.RaymondJames.com/Darcie.