Year-End Charitable Gifting

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Charitable Gifting – Tax Wise giving with IRA’s and Other Assets!

Donor Advised Fund (DAF): Create a personalized philanthropic fund – a flexible charitable spending account – that allows you to defer decisions about which causes to support until sometime in the future when it’s most convenient for you. *Receive an upfront charitable deduction for the gift of up to 50% of your adjusted gross income for gifts of cash.

Gifts of Appreciated Stock: Direct gifts of appreciated stock (don’t sell them) to the Foundation can impact causes you care about. Create a Donor Advised or Endowment Fund to support synagogues, Jewish agencies and other public charities now and in the future with gifts of appreciated stock, bonds and mutual fund shares.

*Donors are entitled to a tax deduction for the full fair market value of gifts of stock – up to 30% of adjusted gross income in the current tax year. No capital gains tax is due on appreciation. In effect your tax savings go directly to support causes near and dear to you.

IRA Gifts: Individuals over the age of 70 ½ are able to transfer up to $100,000 from their retirement accounts directly to the Foundation and other qualified public charities. This popular IRA Charitable Rollover provision was made permanent by Congress for 2016 and beyond.
For your consideration: *Direct your IRA administrator to make a distribution now directly to the Foundation.

Worst case scenario if you choose to make an unqualified IRA distribution now: Your IRA distribution to a qualified charity would be considered gross income to the Donor but eligible for a charitable income tax deduction. This may result in a somewhat less favorable tax benefit than a qualified Rollover due to various factors. However a direct distribution to Foundation or other qualified charities would not likely worsen your position – and the causes you care about would receive much needed support!

Caution: IRA rollover gifts cannot be used to create Donor Advised Funds, Supporting Organizations or to provide any life income benefit to the donors or related parties.

Endowment Funds: Like retirement Funds for charities Endowments are permanent Funds that provide long-term support to causes meaningful to you. Your gift helps support them now and in the future. A reasonable percentage of the average market value of your gift is distributed annually. Your gift keeps giving – in your name – to provide needed support year after year.

Create Your Jewish Legacy – make a gift to or establish an endowment fund to benefit Jewish causes meaningful to you – now and in the future! Contact the Jewish Community Foundation at 717-236-9555 for a confidential conversation.

*This information is provided for educational purposes and should not be considered tax, legal or professional advice. Charitable deductions are based upon the type of asset you gift and your personal financial circumstances. Always consult your trusted professional advisor before making financial plans.

 

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