As the year-end approaches, the Community Foundation wants to remind you that it may be a good time to check in with your professional advisors regarding year-end giving. Two topics to consider:
Bunching Charitable Deductions - Changes in tax law almost doubled the standard deduction. As a result, many taxpayers won’t receive a tax benefit for charitable deductions. A tax-smart strategy to overcome this issue is bunching deductions.
Bunching deductions is simply gifting several years of donations in one year to your donor advised fund allowing you to itemize your deductions in the year of the gift. Your donor advised fund then has an account balance that can be paid out at your request to charities over time.
Gifts of Appreciated Stock – Did you know that if you own stock that has grown in value, you can gift it to your donor advised fund and receive the current market value, regardless of the amount you paid? In addition, by gifting to your donor advised fund, the Community Foundation coordinates with your broker so you can avoid the headache and hassle. This can be a valuable tool to rebalance your portfolio or to avoid paying capital gains taxes if you were to sell the stocks outright.
Again, we advise you to check with your professional advisors to determine if these may be helpful in your situation.
When thinking about your end of year giving from or to your donor advised fund, here are a few important dates to consider:
If you would like your favorite charities to receive grants from your donor advised fund prior to the end of the year, grant recommendations should be made by Sunday, December 8th.
To qualify for a charitable deduction in 2019, gifts must be received by December 31.
Cash gifts can be made in any of the following ways:
Online giving: You may make a gift at cfgg.org at any point before midnight on Tuesday, December 31st.
Mailed gifts: Mail must be postmarked this year by Tuesday, December 31st.
Hand-delivered gifts: Drop off your gift at the Foundation by Tuesday, December 31st, at 5:00 pm. (Our office is closed on December 24th, 25th, and January 1st.)
Stock gifts should be emailed to Christine Evans (firstname.lastname@example.org) at the Community Foundation and initiated through your broker by Thursday, December 19th to allow time to complete the transactions before year-end. Please include details of stock name, number of shares, and which fund to credit in your email to Christine.
Thank you for partnering with the Community Foundation. We hope your year-end is full of warmth and love.