Monday, September 16, 2019

Year-End Charitable Giving

Because of your generosity and commitment to The Marco Island Historical Society we have our World Class Museum and Rose History Auditorium. Now it is time to plan for our future. MIHS established an Endowment Fund which will consist of gifts and donations from people just like you. In accordance with the Investment Policy Statement approved by your Board of Directors, donations will support exhibits, as well as historical and educational programs. Our Investment Policy Statement outlines parameters on spending policies to assure donors that funds are set aside to meet our long-term goals and needs.

As the holiday season approaches, we pause to give thanks for our blessings and the people in our lives. It is also a time when charitable giving often comes to mind. Charitable giving can be enhanced using income tax deductions, and is effective when included as part of year-end tax planning.

December 2012 provides a unique opportunity as leaders on Capitol Hill are under pressure to solve The Federal budget deficit problem. Going forward, many tax deductions may be reduced or eliminated. One deduction under scrutiny is the charitable deduction. In this changing tax environment, it may be beneficial to accelerate charitable gifting as a part of your comprehensive tax strategy.

For example, if you’re considering a charitable gift equal to the sum of $1,000 plus the income taxes you save with the charitable deduction, with a 28% tax rate, you might be able to give $1,389 to charity ($1,389 x 28% = $389 taxes saved). On the other hand, with a 35% tax rate, you might be able to give $1,538 to charity ($1,538 x 35% = $538 taxes saved).

Tax deduction for charitable gifts If you itemize deductions on your income tax return, you can generally deduct gifts to qualified charities. However, the amount of your deduction may be limited to certain percentages of your adjusted gross income (AGI). Deductions for gifts of cash to public charities are generally limited to 50 percent of your AGI for the year, and other gifts to charity may be limited to 30 percent or 20 percent of your AGI. Disallowed charitable deductions may generally be carried over and deducted over the next five years, subject to the income percentage limits in those years. And be sure to retain proper substantiation of your deduction for a charitable contribution.

Year-end tax planning
 When making charitable gifts at year end, it is useful to include them as part of your year-end tax planning. Typically, taxpayers have some control over the timing of income and expenses. You generally want to time your recognition of income so that it will be taxed at a lower rate, and time your deductible expenses so they can be claimed in years when you’re in a higher tax bracket.

What we do next matters! If you’re interested in creating a lasting legacy, supporting your organization now and in the future, as well as potentially maximizing charitable deductions, please contact a Board Member for more information on gifting opportunities. We will also be hosting educational and acknowledgement dinners next February and March for those who are interested; please let us know who you are! Again, we are so thankful for each of our members and donors and wish you a Blessed Holiday Season. Thank you for your past and future gifts to bring our unique Marco Island History into the spot light.

Please contact Darcie Guerin at 389-1041 if you would like further information on our Endowment Fund and year end Charitable contributions.

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