Under the new tax law that became effective January 1, 2018, the standard deduction has increased to $12,000 for individuals, $24,000 for married couples. At the same time, many itemized deductions have been limited or eliminated altogether. This means fewer people will be itemizing their deductions and receiving a tax benefit from their charitable gifts.
If this will be your situation, consider the following giving strategy: give in 2018 what you plan to give over the next several years. This “bunching” of your gifts may cause your total itemized deductions in 2018 to exceed the amount of the standard deduction, thus allowing you to get a tax benefit from your charitable gifts that you would not otherwise receive. Then, in the subsequent years, take the standard deduction.
Don’t want to give it all at once to the charities you support? No problem, you can set up a Giving (Donor-Advised) Fund with National Christian Foundation (www.ncfgiving.com), make the bunched gift into the Fund, and then grant monies from the Fund to your charities each year over the bunched period.
Want to be even more tax efficient in your giving? Consider giving appreciated securities you have held more than one year. Not only will you receive a tax deduction for the value of the securities given, but also you will avoid ever having to pay capital gains tax on the profit you made on those securities!
National Christian Foundation can help here too. Instead of transferring securities to each charity you support, you make one transfer to your Giving Fund. The securities are sold and the proceeds are then available to be granted from the Fund to as many charities as, and over whatever time period, you choose!
Submitted by Mark McDonald, President, National Christian Foundation-Kentucky, 651 Parameter Drive Suite 620, Lexington, KY 405 Phone: 859.288.7617, Email: Kentucky@ncfgiving.com