It’s the most wonderful time of the year!
With the end of the year fast approaching, you may be considering making a gift to the Community Foundation. It’s a critical time to give generously to support our communities while also taking advantage of tax benefits.
Appreciated assets are tax-effective gifts
Gifts of appreciated assets like stock, securities, mutual funds, closely held stock, and real property are often tax-effective gifts, especially when capital gains taxes can be avoided.
IRA Qualified Charitable Distributions
If you’ve reached the point where you must take required minimum distributions (RMDs) from your traditional IRA, you have the option of donating as much as $100,000 in the form of a qualified charitable distribution (QCD), which is made with pre-tax assets. Because the distribution goes directly to the charity, it is not included in your taxable income, nor does it add to your adjusted gross income (AGI). QCDs may not be given to a donor advised fund, but may be made to other funds, like scholarship funds or one of the Foundation’s grantmaking funds, like Fund for the Future, the Bedford County Community Fund, or the Somerset County Community Fund.
“Bundling” charitable gifts is still an effective tax strategy
Charitable contributions can only reduce your tax bill if you itemize your taxes, which generally happens when the combined total of your anticipated deductions – including charitable gifts – add up to more than the standard deduction. Individuals who want to maximize their charitable deductions and itemize in 2023 can “bundle” their charitable gifts – i.e., make two or more years’ worth of charitable contributions in a single year. This strategy helps push taxpayers over the itemizing threshold, where they can reap the benefit of deducting the full value of their donations.
We can collaborate with you and your wealth adviser, so your charitable intentions have a lasting impact, with maximum tax benefits.
End of Year Giving: How and When
Checks: Mail to our office at the address below. Envelope must be postmarked by Saturday, December 30. Please note that New Year’s Eve falls on a Sunday this year. The Community Foundation will be open all day on Friday, December 29, so you can also drop off a check in person.
ACH Fund Transfer: Transfers generally take 2-3 business days, so please initiate your transfer no later than Friday, December 22nd. For all transfers, please contact Katrina Perkosky, Director of Donor Services (814-208-8411, firstname.lastname@example.org) to notify us of the amount of your gift and the fund name. Or CLICK HERE to download easy, step-by-step instructions.
Stock Transfer: Processing times can vary, but can take weeks, so if you are interested in this type of gift, please act immediately! For all transfers, please contact Katrina Perkosky, Director of Donor Services (814-208-8411, email@example.com) to notify us of the stock name, number of shares, and the name of the fund. Or you can CLICK HERE to download easy, step-by-step instructions.