Simplify your year-end giving
October 31, 2023
As 2023 comes to a close, it is a good time to plan your year-end gifts. Our advancement team – Michelle Hardy, Mimi Slade, and Kayla King – created this list of tips to make your 2023 giving a little easier.
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.
Also, with a higher standard deduction now, fewer taxpayers are itemizing their returns. You may consider “bunching” gifts planned for multiple years into a single year to push your charitable deduction higher than the standard deduction.
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 about the local nonprofit community and the broad charitable needs of our region – so you can stay informed about the organizations you support and the impact your giving will have on the future of our community. We perform due diligence on every grant that goes out from the Community Foundation.
Gifts through the mail and by credit card.
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.
Gifts of long-term appreciated stock have potential tax benefits of avoiding capital gains tax on 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.
Designated Funds – a vehicle for accepting Qualified Charitable Distributions (QCDs) from IRAs.
While the IRS prohibits Qualified Charitable Distributions from an IRA to flow into a donor advised fund, donors can create Designated Funds with their IRA at the Community Foundation. Donors must select the nonprofit beneficiaries at the same time the fund is established. Designated 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.