2019: Changes in Charitable Giving
When you filed your income tax return, did it look different than in the past? The law enacted last year likely changed your tax strategies, including your charitable giving. Here are two tactics that can help you leverage your assets to ensure that you and the people and causes you care about get the most benefit.
1. Be aware of the higher standard deduction
The law nearly doubled the standard deduction, meaning that it may be to your advantage to itemize your deductions (the spot where your charitable efforts were recorded).
One consideration is to “bunch” your gifts, that is, contribute multiple years’ worth of giving to exceed the standard deduction. You’re then incentivized to itemize your taxes. You can bunch your gifts directly to the nonprofit, such as The Robert W. Woodruff Arts Center, or to a donor advised fund (think of these as a charitable savings account: You recommend how much and how often gifts are made to the organizations you care about). The next year, if you choose not to itemize, you can take the standard deduction.
2. Consider tax-savvy approaches to giving
A few impactful gifts still offer tax advantages, regardless of whether you itemize.
- Appreciated stock: Despite market fluctuations, many of your investments are likely worth more than you originally paid for them. Give your appreciated stocks to a nonprofit like The Robert W. Woodruff Arts Center. You will qualify for an income tax charitable deduction and eliminate capital gains tax.
- Retirement plan assets: These assets are taxable when distributed to a loved one but are tax-free when given to a nonprofit organization like The Robert W. Woodruff Arts Center. If you are 70½ or older, you can fulfill your required minimum distribution with a charitable gift and it’s not considered taxable income.
- Real estate: Many real estate markets are enjoying gains. Appreciated real estate may be subject to capital gains tax unless donated to charity or transferred to a charitable trust.
Talk With Your Tax Professional
There are many ways you can give this year that will make a difference at The Woodruff Arts Center. Please consult with your tax or financial advisor´s to determine the best charitable giving strategies for your personal situation.
We Can Help
We are so grateful for your generosity. Please contact Nicole Michalec at firstname.lastname@example.org or 404.733.4612 to discuss your goals for furthering our mission and how your gift could be used.
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.