Recent tax law changes have led many of us to consider how these will affect our charitable giving. While the best advice is always to consult your personal tax advisor, here are a few charitable giving options available through NCCF that may offer attractive tax advantages:
Bunching: Also referred to as deduction bunching or bundling, this gift-timing strategy is often used in connection with a donor advised fund (DAF). The donor makes a large contribution to a DAF in one year -- exceeding the newly increased standard deduction. Grants from the DAF are made over the following years. The donor is thus able to continue to support his favorite charities through the DAF, even in years where a charitable tax-deduction is not utilized.
Gifts of appreciated stock: Market gains have made transfers of appreciated stock held longer than one year a particularly attractive giving option. By transferring appreciated stock to a fund with NCCF, a donor may avoid paying capital gains tax and receive an income-tax charitable deduction for the full fair market value of the stock.
IRA Charitable Rollover gift: Donors age 70-1/2 and older may benefit from this strategy even if they do not itemize their taxes. A donor may fulfill his minimum distribution requirements by directing a transfer of up to $100,000 from an IRA to a fund at NCCF (though not to a DAF). As this amount does not have to be recognized as income by the donor, it may reduce the donor’s taxable income.
Please reach out to a member of NCCF's team if we may help you achieve your charitable giving goals.