With the end of the year fast approaching, it’s time for many to begin thinking about their year-end gifts. Our Vice President for Advancement, Michelle Hardy, and Advancement Associate, Mimi Slade, created this list of tips to make your 2020 year-end giving a little easier.

Talk to your advisor.

With the many changes in the tax laws with both the SECURE (2019) and CARES (2020) Acts, please reach out to your professional advisors earlier this year. There are nuances that only apply to 2020 that will not exist in 2021 if the current tax laws remain in place.

Give now—decide later.

If you are planning for a charitable tax deduction this year but are undecided about which nonprofits to support, consider opening a donor advised fund at Central Carolina Community Foundation. You can claim a deduction for contributions to your fund now even though distributions from the fund might be made in future years. A donor advised fund can be set up in one meeting.

Create a giving plan.

The Community Foundation can help you create a giving plan to help you think strategically about how you give and to what organizations. This ensures that your donations make the greatest impact on the causes you care about while maximizing tax advantages.

Create a fund through your estate plans to provide ongoing support to charities most meaningful to you.

We can work with you and your advisors to set up a fund through your estate that maximizes your charitable giving and minimizes your tax impact.

Let the Community Foundation do the legwork.

Working with Central Carolina Community Foundation gives you access to our extensive knowledge of the local nonprofit community and the broad charitable needs of our region—so you can stay informed about the organizations you support and the effect your giving will have on the future of our community.

Plan the timing of your gift.

A gift by check is complete when mailed (postmarked) to the charitable recipient, even if not cashed until the following year. Gifts by credit card are complete when your credit card account is charged.

Consider a stock gift.

Gifts of appreciated stock have the double tax benefit of avoiding capital gains tax on the appreciated value while receiving a deduction for the fair-market-value of the appreciated gift. Please consult your tax advisor because there are some deduction limits to stock donations depending on your income and situation.

Think about making a Qualified Charitable Distributions (QCD) from your IRA.

Although Required Minimum Distributions (RMDs) were waived in 2020 for most donors, making a Qualified Charitable Distribution (QCD) this year will still allow itemizers and non-itemizers alike to direct up to $100,000 from their IRA to charities, like Central Carolina Community Foundation, in a tax-efficient manner. Note: The IRS does not allow IRA funds to flow into a donor advised fund. However, donors can create designated or field-of-interest funds with their IRA distribution. These funds can be set up in one meeting.

This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.