Community Foundation of North Louisiana will ensure your year-end giving is simple, easy, effective, and meaningful. Donations to charitable organizations like CFNLA are deductible for donors who itemize when filing tax returns. We work with you and your tax advisor to achieve the maximum impact for the causes you care about. As you make your holiday gift list, consider one or more of the following donation strategies as a gift that will enhance our community.
An effective strategy to maximize your charitable giving is donating appreciated stock. Donating an appreciated non-cash asset will help you avoid the capital gains tax normally incurred when selling the asset. In some cases, there may even be advantages to selling stocks at a loss and donating the sale proceeds. We are happy to discuss these options with you and your tax advisor.
Donors who itemize rather than take the standard deduction typically do so because the total of their itemized deductions exceeds the standard deduction amount. That said, with the standard deduction increases for 2023 ($13,850 for individuals, $27,700 for couples for 2023), you may find your itemized total is below the standard deduction amount. One solution is to combine or “bunch” multiple years of your planned charitable contributions into a Donor Advised Fund (DAF) at CFNLA. Doing so could enable you to itemize on your 2023 tax return and take the standard deduction on your 2024 return; ultimately resulting in a larger two-year deduction than two separate years of standard deductions. CFNLA requires a minimum contribution of $5,000 for new DAFs, which can be open in less than a day.
If you are over 73, you are required to take a taxable Required Minimum Distribution (RMD) from your IRA account (ROTH IRAs are excluded). If you choose to direct your RMD to a nonprofit entity, like CFNLA, as a Qualified Charitable Distribution (QCD), it will not be taxable. While QCD’s may not be directed to a DAF, they can be donated to any other fund type at CFNLA including Designated, Field of Interest, or Special Initiative funds, like the Early Childhood Education Fund. We can also help you set up a new fund that benefits an interest area of your choice or a specific nonprofit.
Working with the Community Foundation gives you access to our extensive knowledge of the local nonprofit community and the broad charitable needs of our region. We will help you stay informed about the organizations you support and the effect your giving will have on the future of our community. From now until December 31st, we are here to help you achieve your 2023 charitable giving goals.
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