Whether you are an existing Fundholder or a first-time giver, CFNLA is here to help you maximize the impact of your year-end giving.
Contributing to Donor Advised Fund
Donor Advised Funds (DAF) are one way to maximize your year-end tax benefits. Contributing to a DAF allows eligible taxpayers to receive an immediate tax deduction in the contribution year. This is true even if you decide to make grants to nonprofits in the year or years following your contribution.
Only taxpayers that itemize deductions may deduct charitable contributions. The Tax Cuts and Jobs Act of 2017 implemented a higher standard charitable deduction threshold. Specifically, to itemize charitable deductions, an individual needs the total itemized deduction to exceed $12,200 (up from $6,350) whereas a married couple needs a total of $24,400 (up from $12,700). To take advantage of the higher deduction amounts, you can use a DAF to condense several years of charitable giving into one year and gain the maximum tax benefit allowed by law.
By choosing to endow a DAF, your charitable dollars will be invested and can grow tax-free, allowing you to make gifts to your favorite causes for years to come.
Using Your IRA RMD to Make Charitable Contributions
If you are over 70½, you are required by federal law to take Required Minimum Distributions (RMDs) from your Individual Retirement Account (IRA). These “Qualified Charitable Distributions” (QCDs) may be made tax-free if directed to a qualified nonprofit organization like the Community Foundation. (Notably, QCDs may not be made to a Donor Advised Fund.)
Interested in Making A Contribution or Starting a Fund?
CFNLA accepts cash, securities, property, and a variety of other assets. We will work with you to make sure your contributions are received by the year’s end. By donating appreciated property, you may be able to take a tax deduction on your federal income tax for the fair market value of the asset at the time of the donation, as well as avoid capital gains on the increased value.
Starting a fund is simple and can easily be done in a day. There are a variety of fund types to choose from to best suit your charitable goals. Because we manage many funds, administrative costs and service fees for your fund are minimized.
To make a contribution or start a fund, contact the Community Foundation today at 318-221-0582 or learn more at cfnla.org/myfund. For specific tax questions, please contact your personal tax advisor.