As 2020 comes to an end, our team at the Foundation is busy working with fundholders and local advisors to help them accomplish their year-end charitable giving goals. We like to offer some tips and strategies each year that can help donors make the most impact with their philanthropic giving. As we all know, this year has been a difficult one for our nation and our world. Many are in great need and unable to give this year. For those who are able, there is no better time than the present to respond with generosity.
Get Serious About Planned Giving
Now is the time to get serious about your planned giving. Nonprofits are struggling under the weight of the pandemic and the widespread calls for social and racial justice. They need significant investments that prioritize and promote diversity and equity. However, the pandemic has limited their ability to host fundraising events or meet in person with donors. At the same time, we see many older adults making their estate planning decisions right now and a recent CNBC article reported that “Americans are rushing to make online wills in the face of the coronavirus pandemic.” Now is a great time to assess your estate planning with consideration for local organizations in those plans. Through the Omaha Community Foundation, you can use a wide range of legacy giving options to support the organizations that are important to you. You can fund your legacy through your estate plan by providing for a bequest in your will or trust, a gift of retirement assets, a specific beneficiary designation through life insurance, or a variety of gifts or assets. Contact our Donor Services team at firstname.lastname@example.org or 402-342-3458 to discuss your unique situation.
Consider “Bunching” Your Charitable Gifts
Top on our list is a tactic for tax-savvy givers called “bunching” which could help philanthropically-minded donors; bunching has been gaining popularity since new tax reform laws took effect in 2018 raising the standard deduction to $12,200 for individuals and to $24,400 for married couples filing jointly.
Bunching is a giving strategy that allows individuals to contribute several years’ worth of charitable contributions into a Donor Advised Fund at the Foundation in one calendar year. Bunching ensures a donor will have enough charitable donations to exceed the increased standard deduction threshold, and still receive the maximum tax benefits. Donors can then grant the dollars in their fund to nonprofit organizations at the time and year that they choose while maintaining a similar level of giving and timing as in previous years.
At the Omaha Community Foundation, we can help you take advantage of charitable bunching, and ensure it aligns with your personal giving strategy. We work with donors of all levels to ensure their philanthropy is as meaningful and impactful as possible.
Giving Real Estate, Stock, or other Assets
The stock market is at an all-time high and giving stock remains one of the easiest ways to give, so now is the time to donate appreciated securities. If you have held appreciated stock for more than a year, you can take a charitable tax deduction for the fair market value of the stock, and neither you nor the nonprofit will pay capital gains taxes upon its sale. At the Foundation, we can help facilitate the conversion of your gifted stock into charitable dollars, and help distribute it to multiple nonprofit organizations on your behalf.
With each of these strategies, the Omaha Community Foundation is committed to partnering with donors to maximize your philanthropic impact, while helping to make your charitable giving seamless.
Take Advantage of the IRA Charitable Rollover
While standard deductions changed significantly under the 2018 tax changes, many philanthropic giving tools remain intact and offer attractive opportunities for charitable giving. The IRA Charitable Rollover allows individuals 70.5 and older to transfer up to $100,000 from an IRA to a fund at the Community Foundation without triggering federal income taxes today, or estate tax in the future. If married, each spouse is eligible for the tax-free IRA transfer. Not all fund types are eligible for receipt of assets from an IRA, so if you are considering this option, please reach out to a member of our Donor Services team to ensure this solution works for you.
Consider Donating to COVID-19 Response
The COVID-19 Response Fund has remained open for donations and we encourage you to consider making a donation as a part of your year-end giving plan. The Response Fund has already distributed more than $1.2 million to nonprofits assisting those affected by the pandemic, yet the needs continue to grow. Your year-end gift to the Response Fund will ease the impact of the coronavirus pandemic on our own community, especially among those who are most vulnerable.
For more information on taking full advantage of your tax benefits with bunching, or to learn more about opening a charitable giving fund at the Foundation, please contact us at email@example.com or at 402-342-3458.