How to be strategic with your year-end giving
The holidays are quickly approaching and as they do, we
embark on a season of giving. Tax deductions are important for the donor
and nonprofit alike: the nonprofit receives more of the donation since itís not
taxed, and the donor reduces his or her taxable income.
Here are five different tips to share with those
seeking to ease the year-end giving process and reduce their overall tax
1. Use appreciated securities
A gift of appreciated
securities held longer than one year enables the donor to be eligible for an
immediate income tax deduction based on the assetís fair market value on the
date of the gift. It also enables donors to avoid paying capital gains tax on
the appreciation in value of the shares given.
2. Set up a donor-advised fund
Establishing a donor-advised fund allows donors to give a set amount that can
be applied to this tax year, yet be structured and distributed to selected
nonprofits in the future. Donors can actively participate in the grant making
process by recommending grants from their funds to the charitable projects or
organizations they want to support.
3. Don't forget about estate planning
If you have not already established one, setting up an estate plan now is one
more way to receive tax benefits. Is your will up-to-date? Planning ahead of
time allows you to strategically give to charities that matter most to you.
4. IRA Charitable Rollover
IRAs can qualify for tax-free charitable distributions.
Community Foundation of Acadiana can help turn your individual retirement
accounts (IRAs) into tax-saving charitable gifts. Extended tax benefits allow
more people to experience the joy of giving during their lifetimes.
5. South Louisiana Giving Day
Community Foundation of Acadiana is hosting South Louisiana
Giving Day on Thursday, May 10, 2018. It is a 24 hour online challenge for
nonprofits, churches and schools to raise funds through www.SouthLouisianaGivingDay.org. Make a tax-deductible contribution and help
us give as many charitable dollars as possible with an opportunity for our participants
to win matching grant dollars.