5 End-of-Year Giving Strategies to Yield Maximum Impact
Charitable Goals Can Save Money at Tax Time
As the remaining days of 2018 dwindle, our to-do lists seem to grow exponentially with flurries of seasonal tasks and activities. It’s important to make sure that year-end planning doesn’t get lost in the rush, and Greater Cincinnati Foundation (GCF) is here to help keep your charitable giving on track. We’ve assembled a few options to save you money at tax time while fulfilling your charitable goals in impactful ways*:
- Bunching is a strategic way to leverage the power of your contributions in response to the tax code changes that took effect this year. By grouping two or three years of your regular charitable giving amounts into one year – or bunching – alongside other itemized deductions you can accrue a total deduction greater than the standard deduction. The charitable donations can be distributed over multiple years through your donor advised fund, but you receive the tax deduction in the first year. Check out more information about bunching strategies.
- Qualified Charitable Distributions (QCDs) are a gift option for donors age 70 ½ or older for required distribution of their IRA assets. Individuals may transfer up to $100,000 of those assets directly to a qualified public charity such as GCF. With a direct transfer, the funds are not taxable and can be used to support your favorite nonprofit organization. Learn more about QCDs.
- Funds from a private foundation can be granted or converted to a donor advised fund as a personalized, anonymous grantmaking alternative, and then utilized for charitable giving over the long-term. GCF staff can work with you to develop a blueprint for the community impact that you desire, from independent grantmaking and impact investing to multi-generational charitable planning. Read Creating Donor Advised Funds to learn more.
- Privately held business interests may also be contributed to a donor advised fund, achieving tax benefits similar to those realized with appreciated securities. Learn more about making stock transfers and other gifts to your fund.
- Donations may be made to GCF’s Empowering Communities Annual Fund (ECAF), a powerful vehicle driving the work needed to enact sustainable, life-changing equity throughout our communities. The funds support impactful outcomes including this year’s All-In Cincinnati Action Plan. In 2019, GCF will focus its strategies on the critical need for affordable housing. Learn more about our Empowering Communities Annual Fund.
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For further information, please contact your GCF philanthropic advisor.
*Greater Cincinnati staff does not provide tax or legal advice.