Two year-end giving strategies to consider before December 31

December 10, 2018

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Yes, it is December and I’m sure you have been inundated with “Giving Opportunities,” but how will the new tax laws for 2018 impact your taxes and your charitable giving? Millions of Americans will take the increased standard deduction and lose the incentive to itemize their taxes, including charitable deductions. Here are two strategies to consider with the Tidewater Jewish Foundation (TJF), which may be beneficial to you, while making an impact today and in the future.

Create a Donor Advised Fund (DAF )

For a limited time, if you establish a new Donor Advised Fund (DAF) through TJF with at least $7,500, TJF will match your gift with an additional $2,500 totaling $10,000 or more. A DAF allows you to make charitable gifts into the fund at any time and retain the ability to make distribution requests from the fund to charitable organizations of your choice (Jewish or non-Jewish). Think of it like a charitable parking lot to maintain all of your philanthropy managed through our online donor portal, providing 24/7 access. You may also name your child(ren) as successor advisor(s) to your fund, which may be established by an individual, couple, or family.

Given recent tax law changes, you may consider “bunching” a few years’ worth of charitable gifts to create your fund. Your gift into the fund is tax deductible and then you can make distributions from the fund over a period of years to support the charities of your choice in a consistent manner.

Charitable IRA Roll Over

If you are 70 ½ or older (or know someone who is), here is an easy way to help our Jewish community. Rather than take your withdrawal this year, direct your Individual Retirement Account (IRA) administrator to distribute a gift from your IRA to benefit the Jewish community. Any amount you transfer counts against your required minimum distribution (RMD). You can direct up to $100,000 to your favorite causes this year.

So, how does it work? Once you turn 70½, you must start taking RMDs out of your traditional IRA. Normally, these distributions count as taxable income to you. Beginning at 70 ½, however, you can make gifts directly from your IRA to any public charity, like TJF. These “charitable rollovers” or Qualified Charitable Distributions (QCDs) count as part of your RMD, but aren’t taxable income to you. That’s a big benefit, particularlyif, like most seniors, you don’t itemize deductions on your individual tax returns. This will help to reduce taxable income.

Making an IRA Rollover Gift is easier than ever with these simple steps:

• Contact your IRA administrator. Because of the rollover’s popularity, most administrators provide forms and a procedure to help make a rollover gift.

• Direct a transfer of up to $100,000 from your IRA to TJF. This gift can be designated to benefit any of our local charitable organizations.

• You will pay no income taxes on the amount transferred. Note: Because you are not claiming the transferred amount as income, you will not receive an income tax deduction for your gift.

• Contact me at 965-6109 or email skaplan@ujft.org to let us know how you would like your gift used.

If you have not already taken your RMD, a qualifying rollover gift may count toward satisfying this requirement. Consult your own professional advisor (tax, legal, financial) to learn how this provision may apply to your specific situation.

Happy New Year! Looking forward to a bright 2019 together!

Scott Kaplan

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To discuss either of these or other giving options, as well as specific goals, make an appointment for a confidential conversation with Scott Kaplan, Tidewater Jewish Foundation president and CEO. To learn more, call Kaplan at 757-965-6109 or email at skaplan@ujft.org.

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