By: Lynne Yontz, CAP®, Chief Charitable Giving Officer
Given the recently passed Tax Cuts & Jobs Act, the way in which you choose to give to causes you care about may change in 2018. As you prepare for these changes, the Community Foundation is here to serve as a resource. While research and our experience in the field tells us giving is motivated by more than tax incentives, an emerging trend called bunching or front loading can allow donors to maximize their impact in light of the changes to tax law.
Donors can “bunch” their charitable contributions into personalized donor advised funds 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.
Benefits of bunching with a Community Foundation donor advised fund:
· Maximize Impact: Bunch your giving in a single year to itemize taxes, but then make grants to causes you care about over time or as needs arise. This opportunity allows you to consider where and when you want to offer charitable support in a personal and flexible way.
· Endow Iowa: If you contribute to an Endow Iowa qualified donor advised fund, tax benefits can be even greater. In addition to the federal deduction, donors qualify for a 25% state tax credit as they support causes they care about in our state.
· Giving Made Simple: Our team is here to work alongside you in creating a personalized approach to giving. Whether accepting multiple stock transfers or facilitating IRA Charitable Rollover distributions, we look forward to helping to meet your financial and charitable goals.
We are always happy to help facilitate charitable conversations or consider strategies to meet giving goals. We are here to serve you as we make our community and state better together. Contact us to learn more.