Exploring Tax Wise Giving Strategies
We Help You Explore Opportunities for Tax Savings
We can help you explore tax wise strategies that amplify your giving power so that you can give more to the organizations you care about most.
Michele Carey, CAP®
Tax Strategy Amplifies Giving Power
If your client owns highly appreciated assets—such as a privately held business, partnership interests or real estate, they can make a charitable gift using these assets to a fund at GCF and experience significant tax savings.
Consider these strategies to maximize your tax benefits:
Bunching Charitable Donations
Through Donor Advised Funds (DAFs) you can help maximize your charitable giving by bunching gifts. The combining - or bunching - of two or three years of annual donations into one year with a gift to your DAF, alongside other itemizations you can accrue total tax deductions greater than the new standard deduction. Distribute grants over many years.
Qualiﬁed Charitable Donations (QCDs)
Donors aged 70 ½ and older may make tax-free charitable gifts each year through the IRA’s Qualiﬁed Charitable Distributions (QCDs). The law allows each individual to transfer up to $105,000 of your IRA assets directly to a qualiﬁed public charity such as GCF. Because those assets are not recognized as income, they will not accrue federal income taxes.
The Endow Kentucky Tax Credit enables Kentucky income taxpayers to receive a state tax credit of up to 20 percent of a charitable gift to an endowment at a qualified community foundation for the benefit of Kentucky-based nonprofit organizations. It’s a tax-smart way to provide sustained support to your favorite Kentucky nonprofits.