For many non-profit organizations across New Hampshire, the close of the fiscal year on June 30 marks a particularly important season for charitable giving. With nearly 8,000 501(c)(3) organizations serving communities across the state, fiscal year-end donations help support essential services, strengthen programs, and position nonprofits for the year ahead.

For donors, these contributions can do far more than support a worthy cause. Thoughtful fiscal year-end giving may also carry significant legal, financial, and tax implications that are worth carefully considering before making a charitable contribution.

One of the most common forms of philanthropy is a direct cash donation to a qualified nonprofit organization. Donors should confirm that the organization is recognized by the IRS as a tax-exempt charitable entity under Section 501(c)(3). Contributions to qualifying organizations may be deductible on federal income tax returns for taxpayers who itemize deductions.

Timing remains important. Although many people associate charitable giving with the calendar year, non-profits operating on a July 1-June 30 fiscal cycle often rely heavily on donations received before June 30 to help meet annual fundraising goals, maintain programming, and improve financial stability heading into the next fiscal year.

Appreciated assets, such as stocks or mutual funds, may allow donors to avoid certain capital gains taxes while potentially receiving a charitable deduction for the fair market value of the asset, subject to IRS limitations. Individuals over age 70½ may also benefit from qualified charitable distributions made directly from IRAs.

For those considering larger or long-term philanthropic commitments, donor-advised funds, charitable trusts, and estate planning tools may offer additional flexibility and tax planning opportunities. These strategies can help families support charitable organizations while also aligning giving with broader financial and legacy planning goals.

Before making significant contributions, donors should review estate plans, beneficiary designations, and asset structures to ensure charitable intentions are properly coordinated. Maintaining accurate documentation is equally important, particularly for larger or non-cash gifts, as IRS substantiation rules may apply.

As always, individuals should consult with qualified legal, tax, and financial professionals regarding their specific circumstances before making major charitable or estate planning decisions.

At Wescott Law, we have a team of attorneys ready to help with your estate planning needs. Contact us for a consultation.