More than seven years ago, the Community Foundation for Ocala/Marion County, started as a mere vision of the good that could come by linking people’s passions with their giving. In April 2019, the Nonprofit Resource Center opened as a partnership among the Community Foundation, Marion County, the City of Ocala, the Marion County Hospital District and Advent Health to offer much needed resources to our nonprofits providing valuable services to our community’s most vulnerable.
Lauren B. Deiorio
As we draw closer to the end of 2019, it is a great time to consider creating a Donor Advised Fund at the Community Foundation. We handle all administrative details from start to finish so that you can dedicate your time to exploring causes that match your passions. The Foundation can provide philanthropic guidance to help you maximize your charitable giving. However, the many tax-deductible strategies that assist in your year-end tax planning are the often-overlooked biggest benefits to donors.
Here are a few benefits to research that can be extremely beneficial:
- Income Tax Deduction– When you contribute to your Donor Advised Fund, you will receive an immediate tax deduction in the year you contributed. However, there are some limitations depending on your adjusted gross income or AGI. For example: Cash Donations can be up to 60% of your AGI, Securities or other appreciated assets can be up to 30% of your AGI (Excess unused deductions may be carried over 5 years)
- Bundling or Bunching of Tax Deductions– With the increase of the standard deduction for 2019 to $12,200 for single filers and $24,400 for married filers, many taxpayers will consider forgoing itemizing their deductions to take the standard deduction instead. With a Donor Advised Fund, a donor can take advantage of “bundling” by donating a sizable gift to their fund in a year where they need larger deductions for itemizing. Then in subsequent years, the donor can take the standard deduction and still donate to their charities of choice from their Donor Advised Fund.
- Avoid Capital Gains Tax– Donors incur no capital gains tax on gifts of appreciated assets. For example: If a donor donates a highly appreciated stock that they held longer than one year, the donor can take advantage of receiving a charitable tax donation at the market value while avoiding the capital gains tax.
- Tax Free Growth on your donation– While you are trying to determine a strategy for your giving, your Donor Advised Fund grows tax free which will enable you to have a larger impact once you are ready to put your plan into action.
- Reduction of Alternative Minimum Tax– If you are donor who is subject to the Alternative Minimum tax, contributions you make to a Donor Advised Fund can reduce the impact.
These are just a few great strategies and tax benefits to utilizing a Donor Advised Fund. In addition to tax benefits, there are many other administrative benefits to opening at Donor Advised Fund. Contact us today at (352) 622-5020 to learn how the Community Foundation can get you started. We want to help turn your passion for our community into a solid philanthropic plan.
*We recommend discussing your tax options with a professional advisor.
The Estate Planning Council of Marion County’s next meeting, November 13, will take place at Mesa de Notte. Their holiday social will be held on Tue., December 3 from 4 p.m. -6 p.m. at the Community Foundation.
The NonProfit Business Council presents this seminar entitled “Strategic Planning for Nonprofits” on November 1. It will kick off the new program offering at the Nonprofit Resource Center. Register now.
The programs of the Community Foundation and the Nonprofit Resource Center impact our community in a unique way. The Nonprofit Resource Center strengthens our community’s nonprofits by providing grant, strategic planning, financial and accounting counseling, professional development, capacity building tools, and nonprofit technical assistance. A corporate partnership with the Community Foundation helps us increase tools, resources and services to meet the ever changing and increasing needs of our community. Business leaders who choose to support the Community Foundation’s initiatives directly impact all community nonprofits. Would you like to learn more about becoming a Community Foundation partner? Contact us today.
Coming November 15, 2019 – the 2020 Guide to Charitable Giving! Be on the lookout to pick yours up from the Foundation office or wherever Ocala Style magazines are distributed