In December each year, Alice Young contributes 10% of her gross income to the United Way (a 50% organization). Alice, who is in the 35% marginal tax bracket, is considering the following alternatives for satisfying the contribution. Alice has asked you to help her decide which of the potential contributions listed above will be most advantageous taxwise.
Evaluate the four alternatives, and write a letter to Alice to communicate your advice to her. Her address is 2622 Bayshore Drive, Berkeley, CA 94709.