Tax benefits of giving

Tax benefits for you, powerful impact for local families

As you plan your giving strategies this year, we want to share some ideas about how giving to Interfaith Outreach can provide tax benefits to you.

• Long-term appreciated assets – If you donate long-term appreciated assets like bonds or stocks, you generally avoid paying capital gains taxes, but still get an income tax deduction for the full fair-market value of the gift, up to 30 percent of your adjusted gross income.
• Combine multi-year deductions into one year – Many taxpayers will not qualify for the necessary deductions to surpass the standard deduction threshold established by tax reform in 2017. However, you can still receive a tax benefit by “bunching” multiple years’ worth of charitable giving in one year to surpass the itemization threshold. In off years, you take the standard deduction.
• Estate planning – If your net worth exceeds estate tax thresholds, naming Interfaith Outreach in your will or as a beneficiary of a qualified insurance policy, retirement plan or trust might reduce or even eliminate the burden of estate tax for your heirs.
• Donor-advised fund – A donor-advised fund is a dedicated account for charitable giving. When you contribute to a charity that sponsors donor-advised funds, you are eligible for an immediate tax deduction. You can then recommend grants over time to any IRS-qualified public charity and invest the funds for tax-free growth. Donor-advised funds provide many benefits for organizing and planning giving, but they also offer advantages in terms of income, capital gains and estate taxes.

Questions? Contact Jill Kohler at jkohler@iocp.org or 763-489-7512.

Consult your financial advisor to see which is most beneficial to you.