Bread-and-butter planning tips
October 29, 2019
As we approach the end of 2019, here are a few reminders about how BCF can help you work with clients to create a charitable giving plan that will take full advantage of any tax-saving opportunities available to them.
Worth repeating: Bundling gifts
The timing of charitable gifts is something that can’t fall off the radar, so it’s worth a regular reminder about bunching, or “bundling,” gifts to charities. The ripple effects of tax reform have meant that just 10% of taxpayers now itemize deductions, down from 30%. A smart strategy for your charitable clients who want to maximize deductions under the new tax laws is to make two or more years’ worth of charitable contributions in a single year. This can push taxpayers over the itemizing threshold to reap the benefits of deducting the full value of their donations.
Checklist: Types of funds at community foundations
BCF offers a variety of charitable giving vehicles to meet your clients’ needs. Keep this checklist handy as you meet with philanthropic families.
Donor-advised Funds: A donor-advised fund enables your client to establish a specific account for charitable giving. Clients make tax-deductible contributions of cash or other assets to the fund, and then they are able to recommend grants to favorite charities.
Civic Leadership Fund: BCF has its finger on the pulse of the community’s most pressing issues. A gift to BCF’s Civic Leadership Fund gives your clients the opportunity to support community needs that can’t be identified until the future.
Field of Interest Fund: Clients who want to target giving to specific areas of community need (such as education, health, environment, or the arts) can establish a field of interest fund to establish parameters for grant making under the ongoing guidance and expertise of BCF’s staff.
Designated Fund: A designated fund allows a client to direct giving to a specific agency or purpose. This type of fund is eligible for IRA rollover contributions. Over time, BCF manages the distributions from the fund according to the terms established by the client.
HOW WE CAN HELP
BCF can help you determine what type of fund is best for your client. Want more info? Contact Rosemary Calderalo today.