Before the tax year ends…make the most of your charitable gift

Make the most of your charitable gift this year while potentially realizing tax savings.

Learn more about the Jewish Community Foundation of the Minneapolis Jewish Federation (JCF).

1. Gift Appreciated Assets

If you have owned appreciated assets, such as stock or real estate, for more than one year, and you donate it directly to a charity, you avoid capital gains tax on the appreciation and are entitled to a charitable deduction equal to the full fair market value of the property. Gifting appreciated assets to open a fund or add to an existing fund at the JCF is a simple, single transaction that allows you to then make donations to multiple non-profits from your fund.

2. “Bunching” Gifts

Make multiple years’ worth of donations to non-profits in one year in order to overcome the standard deduction for that tax year.

3. Gift IRA Minimum Distributions

If you are over the age of 70.5, you must take a required minimum distribution (RMD). You may donate up to $100,000 of your qualified charitable distribution (QCD) tax-free directly to one or more non-profits. The QCD counts towards your annual RMD.

4. Front-Load a Donor-Advised Fund

“Bunching” multiple years’ charitable donations to open a fund or add to an existing donor-advised fund may help you reach a total of itemized deductions that are greater than the standard deduction for a single tax year. The charitable dollars will be invested for growth in the fund, increasing the sum available to give charity. You can then make charitable donations on your own timeline.

5. Gift Retirement Assets

Assets in tax-deferred plans (IRA, 401(k), 403(b), etc.) are subject to income tax when distributed to heirs. Naming a charity, such as Federation, as a beneficiary of your plan may help your heirs avoid income tax while you give to charity. You can also use this to open or add to an existing fund or endowment.

*The Jewish Community Foundation of the Minneapolis Jewish Federation does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors before engaging in any transaction.