Thanks to our partners at Gabriel Group, we have some advice to help you make the most of the last month of 2018.
With the nonprofit world still reeling from the tax changes brought on by the Tax Cuts and Jobs Act of 2017, now is the time to communicate with your donors on how they can benefit from charitable giving this year. Use the strategies below to help your contributors make the most of their giving in 2018:
- Encourage your donors to deduct from their IRA. Let those who are 70 ½ or older know that making a direct distribution from their IRA (up to $100,000) will reduce the amount they are taxed and qualify toward their annual minimum distribution.
- Get your donors to think outside the box. Let them know that transferring stock, property or other assets to charity is a viable option. They can avoid paying capital gains tax while you receive the support.
- Emphasize your planned giving opportunities – especially charitable gift annuities and charitable remainder trusts. With CGA rates going up in 2018 for the first time in years, now is the time to encourage your donors to consider signing a contract to both see tax benefits and secure a steady cash flow in their later years.
- Determine if “bunching” is a right fit for your donors. By consolidating donations and any other deductions into target years, the “bunched” deductions will exceed the standard deduction. This will provide an incremental tax benefit to donors.
Although the major increase of the standard deduction has left taxpayers rethinking their donation plans, the list above proves there are plenty of opportunities for donors to give back while still benefiting from their taxes. Consider sharing these ideas with your donors as we quickly approach December 31st!