Kitsap Community Foundation’s Post

💡 Maximizing Charitable Contributions & Tax Benefits Giving to charity is not only a great way to support causes you care about—it can also provide significant tax benefits! Here’s how you can make the most of your charitable donations: 1. Donor-Advised Fund (DAF): A DAF allows you to donate assets (cash, stocks, etc.) and take an immediate tax deduction while distributing the funds to charities over time. It’s a smart way to plan for future giving while benefiting today! 2. Qualified Charitable Distributions (QCDs): If you’re over 70½, you can donate up to $100,000 directly from your IRA to a charity through a QCD. The benefit? It counts toward your Required Minimum Distribution (RMD) and isn’t included in your taxable income. Both strategies can help you support the causes you care about while reducing your tax burden—an all-around win! 📊 Tip: Always consult with a financial advisor or tax professional to ensure you’re maximizing your contributions and minimizing taxes. #TaxPlanning #FinancialPlanning #CharitableGiving #TaxBenefits #EstatePlanning

Make the most of your charitable impact this year with The Alaska Community Foundation. Here’s how to ensure your support qualifies for a 2024 tax deduction if you itemize: >> Mutual Funds & Special Securities: Initiate these donations by December 2 for timely processing.* >> Grant Recommendations: Already have a charitable fund with us? Submit your grant recommendations by December 6 to guarantee your support of your preferred nonprofits in 2024! Use our Donor Portal at alaskacf.org/portal or email grants@alaskacf.org. >> Stock Gifts: Ensure appreciated securities are transferred by December 13.* >> Wire Transfers: Please initiate wire transfer donations by December 24 to ensure they arrive in time.* >> Check Donations: Checks mailed via USPS must be postmarked by December 31. However, if sending by FedEx, UPS, or another delivery service, ACF must receive your gift by December 31. >> Credit/Debit Cards: Make an online gift by December 31 at 11:59 p.m. to receive a tax benefit. Donate here: alaskacf.org/donate * For a smooth process, contact the ACF Finance team at finance@alaskacf.org or (907) 334-6700. Your generosity empowers nonprofits across Alaska – thank you for making a difference in your community!

Maximize Your Year-End Giving As 2024 winds down, it’s the perfect time to explore impactful charitable giving strategies that also provide tax benefits!  Make Tax-Free Gifts with Your IRA RMD: If you're 73 or older and need to take your required minimum distribution (RMD), consider a  Qualified Charitable Distribution (QCD). Send your RMD directly to GAF by December 31, 2024, and make it tax-free! (Remember, QCDs must go directly to charity—not through your bank account.)  Donate Appreciated Stocks for Maximum Impact: Give smarter by donating appreciated stocks you’ve held for over a year. This approach helps you avoid capital gains taxes while maximizing the impact of your gift.  Bundle Your Donations to Maximize Tax Savings: Combine several years’ worth of donations into one tax year to maximize deductions. This “charitable bunching” strategy unlocks savings if your gifts don’t typically exceed the standard deduction.  Establish a Donor-Advised Fund for Ultimate Flexibility: With a DAF, you can make a single gift now for tax benefits and recommend grants to your favorite charities over time.  Make your generosity count this holiday season! Contact us today to learn more about these options.  Call 330-823-8560 Email info@greateralliancefoundation.org #YearEndGiving #CharitableGiving #GreaterAllianceFoundation #TaxBenefits #IRA #DonorAdvisedFunds #MakeAnImpact 

Now that #taxday2024 is behind us, let's start planning your charitable giving for 2024, especially donations that may qualify as tax deductions! 🎉 Because USA Cares' financial assistance requires so much funding, your support is best given through capital, but that doesn't mean you're limited to monetary donations. Here are some suggestions: 1) THINK BEYOND CASH Instead of selling your non-cash assets like stock and mutual fund shares and donating the after-tax proceeds, it may be advantageous to donate these assets directly. 2) MAKE A COMBINED GIFT A charitable gift that combines cash and long-term appreciated securities may create a larger deduction than contributing securities alone. 3) CONSIDER A DONOR-ADVISED FUND A donor-advised fund is a dedicated charitable account used for the sole purpose of supporting charities you care about. The fund also can be invested for potential growth, possibly resulting in even more money for charity. (For more information on charitable giving tax deductions visit: https://lnkd.in/eGhzW5x or speak to a tax professional.) #charity #charitablygiving #giveback #taxes #noprofit #veteransupport

Today is Donor Advised Funds (DAF) Day! ...and what exactly are "donor advised funds?" 🤔 Well, a donor advised fund, or "DAF," is a tax-advantaged investment account that allows donors to make donations to charities. If you support multiple organizations, or if you want to secure a charitable deduction now and designate beneficiaries later, a DAF may work for you. Learn more about how you can support CBF through a DAF: https://lnkd.in/eyP27cQD

💡 Charitable Remainder Trust (CRT) vs. Donor-Advised Fund (DAF): What is the difference? 🌟 Both CRTs and DAFs offer unique ways to support your favorite causes while enjoying financial benefits. Here's a quick comparison: Charitable Remainder Trust (CRT): ♦ Provides income for a set period before the remainder goes to charity. ♦ Offers significant tax advantages and helps in estate planning. ♦ Ideal for those looking to receive income during their lifetime. Donor-Advised Fund (DAF): ♦ Allows you to make a charitable contribution, receive an immediate tax deduction, and recommend grants over time. ♦ Offers flexibility in how and when funds are distributed to charities. ♦ Simple to set up and manage, making it accessible for many donors. Both options can help you achieve your philanthropic goals, but the right choice depends on your personal financial situation and giving strategy.

In philanthropic giving, our donors often seek efficient and impactful ways to support causes close to their hearts while optimizing their financial strategies. Recently, we connected with Chris Inman, CFP® '96, past board member, to share insights on the latest features of Qualified Charitable Distributions (QCDs). Over the next few weeks, we'll share a few of those quick notes with you! Q: What is a QCD? A: These distributions allow those 70 1/2 or older to donate funds directly from their IRA to an eligible charitable organization without incurring taxable income on the distribution. Key Criteria: 1. Eligibility - individuals must be at least 70 1/2 years old at the time of the distribution. 2. Direct transfers - funds must be transferred directly from the IRA custodian to the qualified charitable organization to qualify. 3. Qualified charities - QCDs can only be made to eligible 501(c)(3) charitable organizations. 4. Reporting requirements - Taxpayers must report the QCD on their tax return. To learn more about planned giving through QCDs or other opportunities, contact Daniel Barton, senior planned giving officer, at daniel.barton@usm.edu.

Did you know that you can use your Required Minimum Distribution (RMD) to make charitable donations, a strategy that could benefit both you and the causes important to you. You must withdraw money once you turn 73 if you have a traditional IRA. These withdrawals, or RMDs, are taxed at the ordinary income tax rate, which can sometimes push your annual income into a higher tax bracket, which may cause retirement concerns. However, there's a strategy that may help you put these distributions to good use and can help manage your tax situation: the Qualified Charitable Distribution (QCD) rule. This rule allows traditional IRA owners to deduct their RMDs on their tax returns if they donate the money to a charity or a non-profit organization. Interested? Let your IRA custodian know your intention to donate your distribution and the amount you'd like. The custodian will then send a check to the charity on your behalf. It's important to remember that QCDs must be made directly from your IRA. * *IRS.gov, November 16, 2023 *The Internal Revenue Service has specific rules and guidelines for charitable contributions. Before taking any specific action, be sure to consult with your tax professional.

If you have a lot of unrealized capital gains, don't like paying taxes, and would like to contribute to charity, then listen up, this one is for you! Donor-Advised Funds (DAFs) might just be the philanthropic solution that you've been searching for. 🌟 DAFs are a savvy way to manage your charitable giving while optimizing your tax benefits. By contributing to a DAF, you can claim a tax deduction in the year you make the contribution, not when the funds are distributed to charities. This means you can donate appreciated assets, avoid capital gains taxes, and support your favorite causes over time. The process is simple: you contribute to a fund managed by a sponsoring organization, and while they handle the legal control, you retain advisory privileges over the distribution of funds and investment choices. It's like having your own charitable savings account, where your contributions can potentially grow, tax-free, until you decide to grant them to the IRS-recognized charities of your choice. So, if you're looking to make a significant impact and enjoy the financial perks of smart giving, consider setting up a Donor-Advised Fund. It's a win-win for you and the causes you care about. 💡✨ #Philanthropy #DonorAdvisedFunds

As we close in on the end of the year, many of our clients are interested in discussing different tax planning strategies. Here are two strategies that we are seeing a lot: 1. Donor Advised Funds (DAFs): This involves someone donating funds, securities, or non-cash gifts to the newly created DAF. The benefit of a DAF is that it allows for someone to take a tax deduction in the current year while allowing them to time out when charitable distributions occur from the account. 2. Qualified Charitable Distributions (QCDs): A QCD allows for an individual to satisfy their IRA's annual Required Minimum Distribution (RMD). The individual schedules their RMD to go directly from their IRA to a qualified charity of their choice. QCD's do not increase your taxable income.