FAQ – Tax Changes and Charitable Giving
How does the new tax law affect my charitable giving to United Ministries?
We have received many questions about the new tax law and your charitable gifts, and we hope this page will help you as you seek to support United Ministries this year and in the years to come.
1. How does the new tax law impact giving from my IRA?
It doesn’t! In fact, giving directly from your IRA might be even more beneficial to you now.
The Protecting Americans from Tax Hikes (PATH) Act of 2015, enacted by Congress on December 18, 2015, permanently extended the ability to make Charitable IRA Rollover gifts for individuals 70 1/2 and older.
Giving directly from your IRA as part of your Required Minimum Distribution (RMD) can reduce your taxable income and tax liability. It is possible with the Charitable IRA Rollover to claim the now higher standard deduction and get a tax benefit from your qualifying contributions.
To make a gift from your IRA:
- Contact your IRA administrator to make a gift from your IRA to us. To qualify, your gift must be directly transferred to United Ministries.
- Contact Jade Fountain at 864-335-2615 or email@example.com to let us know you are making this gift and if you would like your gift to be used for a specific purpose. (Sometimes, these details are not transmitted to us from your administrator!)
2. How does the change in standard deduction affect me?
The standard deduction has roughly doubled for everyone. If you are single, the standard deduction is now $12,000, while the married filing jointly deduction is now $24,000. For those people who do not exceed those amounts for deductions, a small increase in giving may not generate additional tax savings. However, total charitable contributions can now be used up to 60% of your adjusted gross income, up from 50% in 2017.
3. What do I need to know about donating appreciated stocks and bonds?
As before the tax changes for 2018, donating appreciated stocks, bonds, or other assets avoids all capital gains taxes regardless of whether or not you are able to itemize deductions.
If you do itemize and you donate appreciated stocks that you’ve held for more than a year, you can typically take a tax deduction for the full fair market value of the stocks, up to 60% of your adjusted gross income.
To give stock to United Ministries, visit United Ministries’ Stock Donation Instruction Page.
4. What should I know if I have or want to establish a donor advised fund?
Donor advised funds are another item that was left untouched by new tax law. Those who are able might plan to consolidate multiple years’ worth of giving at one time to a donor advised fund and take advantage of the tax benefits of a charitable deduction in one year, while maintaining the ability to be strategic about where and when they want to give.
5. What if I have additional questions?
If you have any questions, we encourage you to reach out to your tax adviser or other trusted professional. For United Ministries-specific questions, please contact Jade at firstname.lastname@example.org.