Community Foundation Holland/Zeeland



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Tips for Smart Year End Giving

Tips for Smart Year-End Giving in 2020

For many, this time of year inspires gratitude and generosity. At the Community Foundation of the Holland/Zeeland Area, we are grateful for the community we serve and the many generous individuals who give back with their time, talent and treasure to make this place we call home so special. If you are considering how you will make a difference this year, consider these tips to make your charitable dollars go further.

Give Appreciated Assets

If you have stock, bonds, or mutual funds you have owned for at least a year and have appreciated in value, it is likely a better asset to donate than cash. If you donate the appreciated asset as a gift to charity you will avoid paying capital gains tax while getting a tax deduction on the full market value. You may also donate complex, non-publicly traded assets to charity including private company stock, real estate, or other appreciated property.

Open a Donor Advised Fund

As the fastest growing giving vehicle in the nation, Donor Advised Funds (DAFs) are a popular tool to organize your giving. You can bundle multiple years of giving into one year with a Donor Advised Fund to exceed the standard deduction. You will receive a charitable tax deduction at the time you donate to the fund, and can advise on the funds over several years so the charities you care about receive the sustainable support they depend on. 

Consider a qualified charitable distribution (QCD) from an IRA

 If you are at least 70 ½ or older and have an Individual Retirement Account (IRA), you can donate as much as $100,000 each year as a Qualified Charitable Distribution (QCD) to charity. A QCD may satisfy all or part of a Required Minimum Distribution (RMDs), which are not required until age 72, effectively lowering your Adjusted Gross Income for that year. Giving early distributions before you are 72 may save taxes when you must start taking distributions. The CARES act temporarily waives RMDs for all types of retirement plans (including IRAs, 401(k)s, 403(b)s, 457(b)s, and inherited IRA plans) for calendar year 2020.

Consider giving more in 2020

The CARES Act increased the adjusted gross income (AGI) limit for cash contributions for individual and corporate donors. For cash contributions made in 2020, individuals can now elect to deduct up to 100 percent of AGI (increased from 60 percent) and corporations can deduct up to 25 percent of taxable income (increased from 10 percent).

Please note:

DAFS are not eligible recipients for QCDs or qualify for the increased AGI limits, even though they are public charities. However, any other fund at CFHZ is eligible for either strategy, including establishing a designated fund.

We suggest that you consult with your financial, tax, or legal advisor to discuss the giving strategies that best align with your financial and charitable goals, then give the Community Foundation of the Holland/Zeeland Area a call and we will work with you and your professional advisor(s) to help employ smart giving strategies.

Interested in learning more?

Contact Colleen Hill, Vice President of Development & Donor Services, via email or by calling 616-994-8853. 

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85 East 8th Street, Suite 110, Holland, MI 49423   (616) 396-6590   Email us