Q: I read recently that Congress didn't extend several provisions in the tax code, in particular the one allowing people who donate appreciated property (e.g., stocks) to private foundations to deduct their gifts' fair market value.
Can one still deduct donations of appreciated property to charities such as Goodwill and United Way?
A: Yes, you can still deduct donations of appreciated properties to public charities such as community foundations, Goodwill or United Way.
The operative phrase in the "unextended" tax-code provisions is private foundations -- those generally set up by one individual or family, often with a person's name in the title, such as the Ford Foundation, Rockefeller Foundation or Mott Foundation.
Since this tax provision expires on Jan. 1, 1995, those people who are thinking about starting a private foundation or donating appreciated securities to one have three choices:
* Hurry up and get it set up and fully funded before year-end, or
* Use the auspices of a community foundation to establish a donor-advised fund, or
* Wait to endow a private foundation at death, through your will.
Meanwhile, anyone can contribute appreciated securities to public foundations and enjoy the triple advantage of capital gains tax savings, tax deductions of the full market values, and the happiness that comes from doing good deeds.
Susan Bondy founded her namesake financial services company in 1980 to provide financial planning and asset management. She is a frequent guest on "Good Morning America," the "Today Show" and National Public Radio. She is the author of "How to Make Money Using Other People's Money." Write to Susan Bondy in care of The Sun, 501 N. Calvert St., Baltimore, Md. 21278. All letters will be treated confidentially.