As you think about making your year-end gifts, don’t forget about the possible tax benefits of bunching your donations or donating appreciated stock.
The ripple effects of tax reform have meant that just 10% of taxpayers now itemize deductions, down from 30%.
If you want to maximize deductions under the new tax laws, a smart strategy may be to make two or more years’ worth of charitable contributions in a single year to a Fund at the Community Foundation. This could push you over the itemizing threshold to reap the benefits of deducting the full value of your donations.
Donating shares of highly-appreciated stock could be another tax-wise strategy for you. Donating long-term appreciated securities, including stock, bonds, and mutual funds, to a fund at the Community Foundation delivers much greater benefits compared with selling the securities and contributing the after-tax proceeds. The team at the Community Foundation is here to help you establish the most tax-savvy giving vehicles, especially at year-end. Talk to your tax advisor to see if this strategy is right for you.
Call us at 609.219.1800 ext. 200 to learn more about opening a Donor Advised Fund.