New tax law and charitable giving strategies

New tax law and charitable giving strategies

friar with children in Jamaica

Br. Colin King serves in Negril, Jamaice

Tax reform means new strategies for charitable giving

First and foremost, people give to a charity because they believe in its mission and want to make the world a better place. This primary motivation for charitable giving has not changed with recent tax reform.

What the Tax Cuts & Jobs Act of 2017 has changed is how traditional charitable giving strategies can be redesigned to continue to produce tax benefits for donors:

  • Bundle your giving:  If higher standard deductions won’t allow you to itemize every year, consider “bundling” your giving.  Instead of making annual gifts of $2500, it may be that giving $5000 every other year allows you to itemize in the year you make your gifts.
  • Give appreciated assets:  Donating appreciated assets, like securities you’ve held for more than one year, continues to produce significant tax benefits.  You’ll be able to deduct the full fair-market value of the asset and you’ll avoid paying capital gains taxes.
  • Make an IRA gift:  If you’re 70 ½ or older, making an IRA gift to charity will count toward your required minimum distribution.  By reducing taxable income, a qualified charitable contribution made directly from your IRA to a charity may put you in a lower income tax bracket and help you avoid Medicare surcharges.
  • Give through a DAF:  A donor-advised fund is a charitable investment account that grows tax-free and allows you to recommend grants to charitable causes.  You’ll receive a deduction for contributions to your DAF that can help you itemize and save on taxes.

To learn more about tax-wise ways to support the Franciscans, contact Colleen Cushard, Co-Director of Franciscan Ministry & Mission, at (513) 721-4700 or

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