{"id":1004,"date":"2018-09-26T14:35:16","date_gmt":"2018-09-26T18:35:16","guid":{"rendered":"https:\/\/fluentricciardi.com\/?p=1004"},"modified":"2022-01-27T14:36:42","modified_gmt":"2022-01-27T18:36:42","slug":"charitable-contributions","status":"publish","type":"post","link":"https:\/\/fluentricciardi.com\/charitable-contributions\/","title":{"rendered":"Charitable Contributions"},"content":{"rendered":"

With the change in the season and the return of fall, many people begin the act of making their homes less cluttered, and we will all begin to get donation requests in the mail.\u00a0 As the weather cools, we tend to turn an eye towards end of year tax moves as well.\u00a0 The Tax Cuts and Jobs Act of 2017 brought about many changes in how businesses and individuals are going to operate starting for 2018 onward.\u00a0 With the deviations to the itemized deductions that we are all so used to, rethinking your charitable giving is a must.<\/p>\n

<\/p>\n

Charitable contributions are gifts given to qualified non-profits by either individuals or businesses.\u00a0 This can include money, physical items, and\/or investments.\u00a0 In order to be qualified, a non-profit must have a religious, educational, literary, charitable or scientific purpose and have 501(c)(3) status from the IRS.\u00a0 The IRS provides a tool that helps you determine if the\u00a0charity<\/a>\u00a0is a qualified charity.\u00a0 Fair market value is used to determine the amount of the gift.\u00a0 Often it is assumed that gift of time and labor can also be deducted.\u00a0 This is not in fact true.\u00a0 This is because the value of your time versus someone else\u2019s is arbitrary and the Internal Revenue Service does not deal in vague terms.\u00a0 What you can deduct from your volunteered time and labor are the costs that directly relate to those endeavors, including auto costs or mileage, other transportation and supplies.\u00a0 You must have a receipt for all of your claimed deductions.\u00a0 Additionally, you can only deduct the amount of the donation that exceeds the fair market value of the benefit received if you get something in exchange for the donation.\u00a0 For example, if you donate at a local auction for a charity and receive sports tickets in exchange for the donation, you may only deduct the amount of the donation over and above the face value of the tickets.<\/p>\n

Contrary to popular belief, the TCJA did not tax away the deduction for\u00a0charitable contributions<\/a>.\u00a0 What it did do was nearly double the standard deduction for most taxpayers, rising the rate from $6,500 for single filers and $13,000 for joint to $12,000 and $24,000 respectively.\u00a0 This increase thereby made the standard deduction more preferable over the itemized deductions in many cases.\u00a0 And while not everyone that makes donations to charity does so in order to gain the deduction, it is an added benefit. \u00a0Many studies have been done indicating that contributions will drastically lower in the coming years to nearly a forty percent reduction. \u00a0Non-profits are hoping that people will still recognize the needs that are addressed by each of their given charities and will continue to give.\u00a0 If giving is in your future, there are ways that may give you back the tax advantage of clearing the threshold and making itemized deductions a possibility.<\/p>\n

One strategy is called bunching and the idea behind it is that instead of spreading your giving out from year to year, you give a larger amount in a single year.\u00a0 For example, instead of giving $4,000 two years in a row, you can give $8,000 in a single year.\u00a0 Of course, another option is to give a large amount every year that, in combination with your other itemized deductions, carries you over the threshold.<\/p>\n

Another method is that you can give appreciated investments, such as stock shares, that allows you to deduct the full market value without having to pay capital gains on the appreciation, within certain limits.\u00a0 If you are concerned about the value of your portfolio, you can take the cash that you would have donated to charity and use it to purchase identical investments to the ones donated. One can also still donate stocks to a donor advised fund and the charity will receive a check in lieu of the stocks.\u00a0 This is beneficial if the charity does not accept stocks.<\/p>\n

Additionally, retirees ages seventy-and-a-half and older can transfer funds up to $10,000 from their IRA to a qualifying charity.\u00a0 This qualified charitable distribution is better than a straight deduction of cash because the income is never reported as taxable income and the gift counts towards your required minimum distribution.\u00a0 The tax benefit to the individual is the same regardless of whether or not they itemize, and the charity gains the benefit of the donation.<\/p>\n

A final method is to make a charitable bequest and beneficiary designation to a charity of your choice in your estate planning.\u00a0 You can leave a specific amount to the intended charity, designate a percentage of the total estate or sales of assets within the estate, or name the charity as a full or partial beneficiary of the estate, life insurance, investment accounts, bank accounts or any other account that contains a beneficiary transfer policy.<\/p>\n

Many people have focused their attention on the federal changes in itemized deductions and its effect on charitable giving.\u00a0 But let\u2019s turn our attention to state level giving. \u00a0In many states, the state level has increased.\u00a0 For example, in the state of California, those paying the highest level tax rate of 13.3 percent, would be able to claim up to $47.63 in reduced state and federal taxes on a one-hundred dollar deduction.\u00a0 That amount is now worth up to $50.30.\u00a0 This is because, under the new law, the deduction for state taxes is capped at ten-thousand dollars.\u00a0 So, for many taxpayers the reduction in state taxes due to the charitable gift will now make now difference in their federal amount or taxes.<\/p>\n

There are many different factors that go into tax strategy decisions.\u00a0 You may determine that taking the standard deduction is the best tax benefit for you, and still give to an organization.\u00a0 Or you may find yourself on the edge of making the itemized deduction a better benefit, and donations for charitable organizations may tip you over that edge.\u00a0 Whatever your case may end up being, keeping charities and charitable giving strategies in mind is always a benefit.<\/p>\n","protected":false},"excerpt":{"rendered":"

With the change in the season and the return of fall, many people begin the act of making their homes less cluttered, and we will all begin to get donation requests in the mail.\u00a0 As the weather cools, we tend to turn an eye towards end of year tax moves as well.\u00a0 The Tax Cuts […]<\/p>\n","protected":false},"author":6,"featured_media":1005,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nCharitable Contributions - Fluent & Ricciardi<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fluentricciardi.com\/charitable-contributions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Charitable Contributions - Fluent & Ricciardi\" \/>\n<meta property=\"og:description\" content=\"With the change in the season and the return of fall, many people begin the act of making their homes less cluttered, and we will all begin to get donation requests in the mail.\u00a0 As the weather cools, we tend to turn an eye towards end of year tax moves as well.\u00a0 The Tax Cuts […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fluentricciardi.com\/charitable-contributions\/\" \/>\n<meta property=\"og:site_name\" content=\"Fluent & Ricciardi\" \/>\n<meta property=\"article:published_time\" content=\"2018-09-26T18:35:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-27T18:36:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/fluentricciardi.com\/wp-content\/uploads\/2022\/01\/charity_4_3.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"667\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Becky Bertuzzi\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Becky Bertuzzi\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fluentricciardi.com\/charitable-contributions\/\",\"url\":\"https:\/\/fluentricciardi.com\/charitable-contributions\/\",\"name\":\"Charitable Contributions - Fluent & Ricciardi\",\"isPartOf\":{\"@id\":\"https:\/\/fluentricciardi.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/fluentricciardi.com\/charitable-contributions\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/fluentricciardi.com\/charitable-contributions\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/fluentricciardi.com\/wp-content\/uploads\/2022\/01\/charity_4_3.jpeg\",\"datePublished\":\"2018-09-26T18:35:16+00:00\",\"dateModified\":\"2022-01-27T18:36:42+00:00\",\"author\":{\"@id\":\"https:\/\/fluentricciardi.com\/#\/schema\/person\/3af15d7eef1a745b1dc0ede646b5c8fc\"},\"breadcrumb\":{\"@id\":\"https:\/\/fluentricciardi.com\/charitable-contributions\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/fluentricciardi.com\/charitable-contributions\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/fluentricciardi.com\/charitable-contributions\/#primaryimage\",\"url\":\"https:\/\/fluentricciardi.com\/wp-content\/uploads\/2022\/01\/charity_4_3.jpeg\",\"contentUrl\":\"https:\/\/fluentricciardi.com\/wp-content\/uploads\/2022\/01\/charity_4_3.jpeg\",\"width\":1000,\"height\":667},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/fluentricciardi.com\/charitable-contributions\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/fluentricciardi.com\/home\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Charitable Contributions\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/fluentricciardi.com\/#website\",\"url\":\"https:\/\/fluentricciardi.com\/\",\"name\":\"Fluent & Ricciardi\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/fluentricciardi.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/fluentricciardi.com\/#\/schema\/person\/3af15d7eef1a745b1dc0ede646b5c8fc\",\"name\":\"Becky Bertuzzi\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/fluentricciardi.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/2c179bad29fdaf1be6271c50cbf49db8?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/2c179bad29fdaf1be6271c50cbf49db8?s=96&d=mm&r=g\",\"caption\":\"Becky Bertuzzi\"},\"url\":\"https:\/\/fluentricciardi.com\/author\/isynergybecky\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Charitable Contributions - Fluent & Ricciardi","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/fluentricciardi.com\/charitable-contributions\/","og_locale":"en_US","og_type":"article","og_title":"Charitable Contributions - Fluent & Ricciardi","og_description":"With the change in the season and the return of fall, many people begin the act of making their homes less cluttered, and we will all begin to get donation requests in the mail.\u00a0 As the weather cools, we tend to turn an eye towards end of year tax moves as well.\u00a0 The Tax Cuts […]","og_url":"https:\/\/fluentricciardi.com\/charitable-contributions\/","og_site_name":"Fluent & Ricciardi","article_published_time":"2018-09-26T18:35:16+00:00","article_modified_time":"2022-01-27T18:36:42+00:00","og_image":[{"width":1000,"height":667,"url":"https:\/\/fluentricciardi.com\/wp-content\/uploads\/2022\/01\/charity_4_3.jpeg","type":"image\/jpeg"}],"author":"Becky Bertuzzi","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Becky Bertuzzi","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/fluentricciardi.com\/charitable-contributions\/","url":"https:\/\/fluentricciardi.com\/charitable-contributions\/","name":"Charitable Contributions - Fluent & Ricciardi","isPartOf":{"@id":"https:\/\/fluentricciardi.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/fluentricciardi.com\/charitable-contributions\/#primaryimage"},"image":{"@id":"https:\/\/fluentricciardi.com\/charitable-contributions\/#primaryimage"},"thumbnailUrl":"https:\/\/fluentricciardi.com\/wp-content\/uploads\/2022\/01\/charity_4_3.jpeg","datePublished":"2018-09-26T18:35:16+00:00","dateModified":"2022-01-27T18:36:42+00:00","author":{"@id":"https:\/\/fluentricciardi.com\/#\/schema\/person\/3af15d7eef1a745b1dc0ede646b5c8fc"},"breadcrumb":{"@id":"https:\/\/fluentricciardi.com\/charitable-contributions\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/fluentricciardi.com\/charitable-contributions\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/fluentricciardi.com\/charitable-contributions\/#primaryimage","url":"https:\/\/fluentricciardi.com\/wp-content\/uploads\/2022\/01\/charity_4_3.jpeg","contentUrl":"https:\/\/fluentricciardi.com\/wp-content\/uploads\/2022\/01\/charity_4_3.jpeg","width":1000,"height":667},{"@type":"BreadcrumbList","@id":"https:\/\/fluentricciardi.com\/charitable-contributions\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/fluentricciardi.com\/home\/"},{"@type":"ListItem","position":2,"name":"Charitable Contributions"}]},{"@type":"WebSite","@id":"https:\/\/fluentricciardi.com\/#website","url":"https:\/\/fluentricciardi.com\/","name":"Fluent & Ricciardi","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/fluentricciardi.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/fluentricciardi.com\/#\/schema\/person\/3af15d7eef1a745b1dc0ede646b5c8fc","name":"Becky Bertuzzi","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/fluentricciardi.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/2c179bad29fdaf1be6271c50cbf49db8?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/2c179bad29fdaf1be6271c50cbf49db8?s=96&d=mm&r=g","caption":"Becky Bertuzzi"},"url":"https:\/\/fluentricciardi.com\/author\/isynergybecky\/"}]}},"_links":{"self":[{"href":"https:\/\/fluentricciardi.com\/wp-json\/wp\/v2\/posts\/1004"}],"collection":[{"href":"https:\/\/fluentricciardi.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fluentricciardi.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fluentricciardi.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/fluentricciardi.com\/wp-json\/wp\/v2\/comments?post=1004"}],"version-history":[{"count":2,"href":"https:\/\/fluentricciardi.com\/wp-json\/wp\/v2\/posts\/1004\/revisions"}],"predecessor-version":[{"id":1007,"href":"https:\/\/fluentricciardi.com\/wp-json\/wp\/v2\/posts\/1004\/revisions\/1007"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fluentricciardi.com\/wp-json\/wp\/v2\/media\/1005"}],"wp:attachment":[{"href":"https:\/\/fluentricciardi.com\/wp-json\/wp\/v2\/media?parent=1004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fluentricciardi.com\/wp-json\/wp\/v2\/categories?post=1004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fluentricciardi.com\/wp-json\/wp\/v2\/tags?post=1004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}