Community

As the holiday season approaches, with the end of one year and the start of another, we pause to give thanks for our blessings and the people in our lives. It is also a time when charitable giving often comes to mind. Charitable giving can be enhanced using income tax deductions, and so it can be much more effective when it is included as part of year-end tax planning.

Example(s):

Assume you are considering making a charitable gift equal to the sum of $1,000 plus the income taxes you save with the charitable deduction. With a 28% tax rate, you might be able to give $1,389 to charity ($1,389 x 28% = $389 taxes saved). On the other hand, with a 35% tax rate, you might be able to give $1,538 to charity ($1,538 x 35% = $538 taxes saved).

Hurricane Sandy relief
The IRS cautions people wishing to make disaster-related charitable donations to be aware of possible scams relating to Hurricane Sandy. Be sure to deal with recognized charities, and be wary of charities with similar sounding names. It is common for scam artists to impersonate charities using bogus websites, and through contact involving e-mails, telephone, social media, and in-person solicitations. Check out the charity on the IRS website, www.irs.gov, using the search feature, Exempt Organizations Select Check. And don’t give or send cash; contribute by check or credit card.

Tax deduction for charitable gifts
If you itemize deductions on your income tax return, you can generally deduct your gifts to qualified charities. However, the amount of your deduction may be limited to certain percentages of your adjusted gross income (AGI). For example, your deduction for gifts of cash to public charities are generally limited to 50 percent of your AGI for the year, and other gifts to charity may be limited to 30 percent or 20 percent of your AGI. Disallowed charitable deductions may generally be carried over and deducted over the next five years, subject to the income percentage limits in those years. And be sure to retain proper substantiation of your deduction for a charitable contribution.

Year-end tax planning
When considering making charitable gifts at the end of a year, it is generally useful to include them as part of your year-end tax planning. In general, taxpayers have a certain amount of control over the timing of income and expenses. You generally want to time your recognition of income so that it will be taxed at a lower rate, and time your deductible expenses so that they can be claimed in years when you are in a higher tax bracket.

For example, if you expect that you will be in a higher tax bracket next year, it may make sense to wait and make the charitable contribution in January so that you can take the deduction in the next year when the deduction produces a greater tax benefit. Or you might push the charitable contribution, along with other deductions, into a year when your itemized deductions would be greater than the standard deduction. And, if the income percentage limits above are a concern in one year, you might move income into that year or move deductions out of that year, so that a larger charitable deduction is available for that year.

A financial or tax professional can help you evaluate how to make charitable gifts in a way that is beneficial to you.

The information contained herein is based upon sources to be true and accurate, but no guarantee is made to the completeness and accuracy of this information. Please consult statements provided by individual custodians or product sponsors for complete information. Past performance is not indicative of future results. This material has been provided for general informational purposes only and does not constitute either tax or legal advice.  Investors should consult a tax or legal professional regarding their individual situation.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2012.

The American Cancer Society has selected Allen Insurance and Financial to serve as honorary team for the 10^th Annual Relay For Life® of MidCoast Maine.

Allen Insurance and Financial has been a longtime supporter of the Relay For Life event held annually in Rockport. The company’s first Relay For Life team walked in 2004. Since that time the agency’s team has raised more than $45,000 for Relay For Life and has been the top fundraising team countless times at the event. Allen has been a corporate sponsor of the Relay For Life of MidCoast Maine for four years and prior to that the company donated meeting space to the event. Allen Insurance and Financial employees Trisha Wadsworth and Karen Reed will be at Relay to accept the award during the opening ceremony.

“Relay For Life is an inspiring event that gives everyone in communities across the globe a chance to celebrate the lives of people who have battled cancer, remember loved ones lost, and fight back against the disease,” said Wadsworth. “Allen Insurance and Financial views participation in Relay as a cornerstone in our company’s community-based philanthropy. It is an honor to be recognized for the kind of effort that comes so naturally to all of us.”

At Relay, teams of people camp out at a local school, park, or fairground and take turns walking or running around a track or path. Each team is asked to have a representative on the track at all times during the event. Because cancer never sleeps, Relays are overnight events. Teams do most of their fundraising prior to the event, but some teams also hold creative fundraisers at their camp sites during Relay. Relay brings together friends, families, businesses, hospitals, schools, faith-based groups . . . people from all walks of life – all aimed at furthering the American Cancer Society’s efforts to save lives by helping people stay well, by helping people get well, by finding cures and by fighting back.

Relay For Life began in 1985, when Dr. Gordy Klatt, a colorectal surgeon, took the first step of his 24-hour walk around a track in Tacoma,Wash., and raised $27,000 to support the American Cancer Society. In 2011, more than 3.5 million people in 5,000 communities in theUnited States, along with additional communities in 20 other countries, will gather to take part in this global phenomenon and raise much-needed funds and awareness to save lives from cancer.

Community members serving on the Relay For Life committee include: Ronna Emery, Don & Ainsley Kennedy and Bob Jean.

The 10^th Annual Relay For Life of MidCoast Maine takes place at Camden Hills Regional High School on June 22 & 23. To participate, call your American Cancer Society at 1-800-227-2345 or visit www.RelayForLife.org/midcoastme.

The American Cancer Society combines an unyielding passion with nearly a century of experience to save lives and end suffering from cancer. As a global grassroots force of more than three million volunteers, ACS fights for every birthday threatened by every cancer in every community. The American Cancer Society saves lives by helping people stay well by preventing cancer or detecting it early; by helping people get well by being there for them during and after a cancer diagnosis; by finding cures through investment in groundbreaking discovery; and by fighting back by rallying lawmakers to pass laws to defeat cancer and by rallying communities worldwide to join the fight.

As the nation’s largest non-governmental investor in cancer research, contributing about $3.4 billion, the American Cancer Society turns what it knows about cancer into what we do. As a result, more than 11 million people inAmericawho have had cancer and countless more who have avoided it will be celebrating birthdays this year. To learn more about us or to get help, call anytime, day or night, at 1-800-227-2345 or visit cancer.org.

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Allen Insurance and Financial recently made a cash donation to the Area Interfaith Outreach. AIO food collection barrels will be placed in the greater Rockland community through November 15. Look for one in the Allen Insurance and Financial office on School Street in Rockland. Pictured here are Joanne Billington, business insurance specialist at Allen Insurance and Financial and Joyce Burnham, AIO president.

From left, Joe Galli, Unity College director of annual giving;
Shayne Van Leer ’13 and
Richard Crossman and Sherree Craig of Allen Insurance and Financial.

In keeping with the company’s focus on community and service to Maine’s future, Allen Insurance and Financial of Camden, Rockland and Southwest Harbor announce the creation of an annual scholarship at Unity College.

Each year, a $2,000 scholarship will be awarded to a Unity College student studying in the Center for Sustainability and Global Change. The first recipient of this scholarship is Shayne Van Leer ’13 majoring in Agriculture, Food and Sustainability.

“We are excited to be a part of Unity College’s mission in preparing young people for 21st century environmental issues,” said Gilbert Fifield, president of Allen Insurance and Financial. “Unity College is a tremendous asset to the region. The education provided to the environmental leaders of tomorrow affects us all and we want to do our part by supporting their ongoing efforts with this scholarship. We are proud to support students with a passion for community and sustainability.”

Joe Galli, director of Unity’s Annual Fund, recognizes the strength in partnerships with Maine businesses. “Collaboration between educators and businesses with similar goals in supporting education and the environment are crucial to the success of those directly involved. This relationship is an outstanding example of community leadership, commitment and social responsibility.”

“Allen Insurance and Financial andUnity College share a strong commitment to sustainability and education,” said Galli. “Maine’s vibrant agricultural sector is a strength for the state. Shayne exemplifies the future of agriculture and a sustainable lifestyle through the work he is and will be doing. The future of the way we eat and live rests in the hands of students like Shayne. Allen Insurance and Financial recognizes the need for people to be educated in the sustainability fields who will go on to improve our agricultural practices which in turn improves the food we all eat. Students like Shayne will make a difference.”

Unity College is a small private college in rural Maine that provides dedicated, engaged students with a liberal arts education which emphasizes the environment and natural resources. Unity College graduates are prepared to be environmental stewards, effective leaders, and responsible citizens through active learning experiences within a supportive community.

In 2011,Unity College was named to the top 30 of the Washington Monthly college rankings, and was one of 18 U.S. colleges and universities named to The Princeton Review’s 2010 Green Rating Honor Roll.

The Rockland Public Library Endowment Association is celebrating its 10th anniversary this year and continues to raise money in the community for the library endowment to help continue to share the library’s creativeness and usefulness with the public. In this photo, Joanne Billington, the business insurance specialist from Allen Insurance and Financial who works with the library, is presenting a donation to the endowment to Paul Spizzuoco, president of the Rockland Public Library Endowment Association.