Tax Reform and Charitable Giving

    January 16, 2018

     

     

    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 of Greater Des Moines 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 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. 
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      • 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.
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      • And don’t forget about the Endow Iowa Tax Credit, a 25% state tax credit for qualified charitable funds.  Gifts of real estate, stock and IRA rollover assets are all potentially eligible for the Endow Iowa Tax Credit.

     

    Please reach out to our team of charitable giving experts at the Community Foundation to learn more about how we can assist in developing tax-wise charitable giving strategies to support philanthropy now, and for generations to come.  We’re simply better together.