Let’s Bring Charitable Giving Home for the Win

Let’s Bring Charitable Giving Home for the Win… In a recent U.S. Trust Study of the Philanthropic Conversation, a majority of donors report that they will NOT change their charitable giving as a result of the tax law changes. Let’s bring charitable giving home for the win with the following year‐end giving options for your clients: ❖ Bunching Charitable Donations With the increase in the standard deduction, your clients’ ability to claim the charitable contribution deduction for annual gifts may depend on whether they have enough other itemized deductions to exceed the standard deduction. Many donors are using a donor advised fund (DAF) to “bundle” charitable gifts for several years into one calendar year. This strategy allows the donor to exceed the standard deduction in one year while still making annual gifts to support their favorite charities or causes. Also keep in mind that cash gifts to a public charity (including DAFs) are now deductible up to 60% of AGI, and any contributions exceeding the AGI limits can still be carried forward five years. ❖ IRA Charitable Rollover The IRA Charitable Rollover allows donors 70 ½ or older to directly transfer up to $100,000 per year to eligible charities. By using pre‐tax IRA assets, these qualified charitable distributions are excluded from the donor’s taxable income, and count toward satisfying the required minimum distribution (reducing taxable income). Because an IRA Charitable Rollover is not deducted as a charitable contribution and not included in the taxpayer’s income, even non‐ itemizers can benefit. While DAFs, private foundations, and support organizations are not eligible recipients, donors can make a charitable rollover gift to any other fund type, including scholarship funds, designated funds, or field of interest funds to support their favorite causes and charities. ❖ Gifts of Appreciated Stock and Complex Assets By making a charitable gift of appreciated assets like real estate, stock, bonds, mutual funds, donors can avoid capital gains tax and receive a charitable tax deduction for the full fair market value of the asset.

There are less than 90 days left to complete 2018 charitable contributions by December 31st.

Your HCF Home Team can help!

Email: thecentergurus@hcf‐hawaii.org