Make the Most of Your Year-End Giving
November 26, 2018
Now truly is the season of giving and you can make a difference in your community and the causes you care about through a charitable gift to the Community Foundation of Northeast Iowa. When considering where to make your year-end gift, working with your local Community Foundation presents many options that allow you to customize your giving and provides unique tax benefits. Our staff are charitable experts and are here to help you make a gift that’s right for you and makes the impact you want. We hope this year-end giving guide can be a resource for you as you consider your gift during this most wonderful time of year. Keep reading for more great giving ideas or click here to download our printable giving guide.
Five Year-End Giving Tips
- Give early and complete your gift by December 31. Gifts by check must be postmarked by this date. Gifts of stocks and real estate are more complex; don’t wait until late December to make these gifts.
- Talk to your professional advisor. Before making any significant gift to charity, consult your attorney, financial advisor, CPA, or other advisor to understand the impact on your taxes.Appreciated stock can be a tax-effective gift.
- Consider a year-end gift of appreciated stock. Your gift of stock, donated directly to the Community Foundation, will not trigger capital gains tax and you will receive a charitable deduction for its current market value.
- Give online. You can make your last minute gifts via credit card on our secure website. Gifts must be made before midnight on December 31.
- Let the Community Foundation do the legwork. Working with our staff gives you access to extensive knowledge of the local nonprofit community and of the charitable needs of our region. Contact our staff at 319-287-9106 or by email today.
Bunching Donations Through a Donor Advised Fund
Bunching with a donor advised fund
Gifts to donor advised funds are tax deductible. You can combine two or three years of charitable contributions in order to exceed the new, higher standard deduction in a given year. Bunching multiple years’ worth of donations in a single year allows you to receive maximum tax benefits for your charitable contributions.
Giving over time
Although you will not make charitable contributions each year using this strategy, you can still support your favorite charities on “off” years. The assets in your donor advised fund will be available to you so you can make grant distributions even in the years when you don’t contribute to the fund. Funds that are not distributed as grants will continue to be invested by CFNEIA so your charitable dollars can grow tax-free.
Charitable IRA Rollover
Use your distribution for good and receive tax benefits
The IRA Charitable Rollover provision allows individuals 70 ½ or older to donate to charities of their choice. You must be 70 ½ at the time of your gift.
Donations up to $100,000 may be given annually to charitable organizations directly from an Individual Retirement Account (IRA) without treating the distribution as taxable income. Cannot be made to donor advised funds.
Qualified IRA Charitable Rollover gifts can be given to or through your local Community Foundation. You can choose to support the Community Foundation or another nonprofit organization through a designated fund at the Community Foundation.
Nonprofit Funds are Great Giving Options
The Community Foundation of Northeast Iowa partners with nonprofits every day in a variety of ways. One important way is through the administration of nonprofit endowment funds. These funds create long-term stability and a forever source of revenue to ensure their missions thrive for generations. Over 125 nonprofit organizations hold endowed funds with the Community Foundation, giving you many choices when it comes to finding a charity that aligns with your values and passion. These funds are a great option when considering where to make your year-end gifts. You can make a gift of any amount, big or small, to support these nonprofit funds! Gifts to these endowed funds are eligible to receive the Endow Iowa 25% state tax credit. Go to cfneia.org/nonprofitfunds to see the list of funds and make your gift.
Give Today to Take Advantage of the 2019 Endow Iowa 25% State Tax Credits
Now is the time to act to take advantage of 2019 Endow Iowa 25% state tax credits. 2018 Endow Iowa state tax credits were exhausted in February, and now less than $3 million of the $6 million in 2019 tax credits remain. These credits will not last long during the year-end giving season. 2019 Endow Iowa credits are currently being distributed on a first-come, first-served basis. We encourage you to make your gift now to help ensure you receive 2019 credits. If you would like assistance or have any questions regarding the Endow Iowa state tax credit program, please call our office at 319-287-9106.
Plan Today for Tomorrow
Planning your year-end giving is an important part of your charitable plan, but the Community Foundation of Northeast Iowa can help you create a charitable plan that will last beyond your lifetime. Making plans to make an impact on your community and the causes you care about through your Will or estate is a great way to make your giving plan go on forever. We are here to assist you in creating a plan that is right for you and your family. Access great free resources at cfneialegacy.org or contact our charitable giving experts or 319-287-9106.
Make Your Gift
Mail a Check
Please mail your gift to:
Community Foundation of Northeast Iowa
3117 Greenhill Circle
Cedar Falls, IA 50613
Gifts of Stock , Real Estate, or Retirement Assets
Call our development team at 319-287-9106 or by email to make your 2018 giving plans.