Many Americans will be assessing the new tax law to determine how it might impact their charitable giving. The best advice is to consult with their tax advisor to consider how they can best fulfill their charitable giving goals and continue supporting the causes they care about. Learn more about Tax Reform and Charitable Giving.
The Community Foundation offers many tools that can be very attractive tax-wise giving strategies, especially in light of the new tax law.
- Many donors will be assessing the timing of their charitable giving as they determine if they will be itemizing their deductions under the new law. Many donors are considering a strategy known as “bunching” to ensure they receive the maximum tax benefits for their charitable giving. This strategy, coupled with the benefits of a donor-advised fund (also known as a Charitable Giving Fund) through the Community Foundation, can be a tax-wise planning tool.
- Donors can “bunch” their charitable contributions into their personalized donor-advised fund in one calendar year, ensuring they will have enough charitable donations to exceed the newly increased standard deduction. Donors can then direct the dollars in their donor-advised fund over time, maintaining their previous contribution levels and timing.
Several charitable giving tools were left untouched by the new tax law and remain attractive gift planning options:
- Gifts of stock and real estate – with the stock market at or near all-time highs, the opportunity to give appreciated stock or real estate to a charitable giving fund at the Community Foundation is a tax-wise option.
- IRA charitable rollover – For donors 70 ½ or older, this gift is beneficial regardless of whether the donor itemizes their taxes. They can fulfill their minimum distribution requirements and roll up to $100,000 directly to a designated fund, or existing agency fund, at the Community Foundation and the distribution will not be considered taxable income to them.
Please reach out to our team of charitable giving professionals at the Community Foundation to learn more about how we can support you as you develop tax-wise charitable giving strategies for your clients.
Sheila Kinman, Vice President for Development at 561.340.4503 or email Sheila HERE.
Chris Snyder, Charitable Giving Officer at 561.340.4512 or email Chris HERE.
We welcome the opportunity to work with you and your clients to develop plans to continue supporting the charities they love.