Tax Reform: Maximize Your Charitable Giving
With today’s high standard tax deduction ($14,600 for single individuals and $29,200 for married couples), fewer people are itemizing their deductions. However, there are still things you can do to maximize the tax benefits of your charitable giving, and the Community Foundation is a great resource to help you at no cost.
Create or use your Donor Advised Fund (DAF) at the Foundation to “bunch” multiple years of gifts into one year to take advantage of itemizing. Then, make grants from your DAF over time to provide regular support to your favorite organizations, even in years when you will not itemize. Check out our flyer that provides a simple overview of bunching.
Use your IRA to make a Qualified Charitable Distribution (QCD) gift to the Foundation. If you’re 70 1/2 or older, this may be a tax-smart way to directly transfer up to $100,000 per year to the Foundation without having to claim the distribution as income. And you can use your QCD or Required Minimum Distribution (RMD) to create a fund at the Foundation.
Stocks, bonds and mutual funds make great gifts. Simply transfer appreciated securities straight to the Foundation rather than selling first, and typically, you avoid capital gains tax. Direct this gift to one of our 550+ existing funds or create a fund of your own.
Although you should always consult with your own tax and financial advisors, the Community Foundation is honored to be part of your charitable planning team.