The close of the year is just around the corner, as is the holiday season. It’s that time of year again when we start to think about expressing gratitude for the blessings we’ve received and at the same time planning for our upcoming taxes. Thankfully, the two often go hand in hand.
As you review your list of those you’d like to support this year, look to maximizing your charitable income tax deductions. Perhaps you’ve given to your parish, your local food bank, Catholic schools. Maybe you’ve spent some time this past spring cleaning out a bit of extra space in your closet and donated those items to a local charity. Maybe you look forward to sponsoring a family’s Christmas. However you choose to show your generosity, be sure that you are keeping track. Retain your charitable receipts, they may add up to significant savings in your next tax filing.
If you have had a major taxable event this year that has increased your need for a charitable deduction, such as the sale of a home or appreciation of stocks, remember that you have options. Consider maximizing your charitable deductions to offset increased taxes. Where your typical annual giving does not quite add up, a Donor Advised Fund may be the most beneficial solution.
Starting a Donor Advised Fund is comparable to opening a charitable checking account and receiving a tax deduction in exchange. You establish the fund with an eligible organization, a public charity, and contribute the amount of cash or other assets that you decide is appropriate for your specific situation. You receive a full charitable income tax deduction for the year and are able to advise grants from the fund to eligible nonprofit organizations with no payout restrictions, whenever you choose.
This is ideal for those who are requiring a larger tax deduction this year but have not had the time or resources to decide precisely how their charitable contributions should be allocated. By donating directly to a Donor Advised Fund, you free yourself to make those decisions at a later time while preserving your deduction for the calendar year. You will have the ability to advise grants to multiple organizations, whenever and however you choose.
Should you decide that a Donor Advised Fund is an appropriate solution for you, the Catholic Community Foundation can be your partner in administrating it. The Foundation is the only Catholic partner for Donor Advised Funds in Northern California. It ensures you that all funds are invested in accordance with faith values and provides you with the high touch services of staff with the ability to educate you on Catholic ministries in need of your assistance.
In addition, having a Donor Advised Fund with the Foundation assists in achieving a larger vision – strengthening all Catholic ministry in Santa Clara County through fund development and grantmaking; and building Forever Value through endowed funds.
Visit our website at www.cfoscc.org to learn more about Donor Advised Funds and other end of year giving opportunities.