Less Taxes, More Impact
By Rev. Mark Gooden, Vice-President of Development
Last week, we endured another “day of reckoning” with the federal government. . . April 15, Tax Day. (Give to Caeser what belongs to Caeser comes to mind . . . )
Did you know that by thoughtful charitable planning to charity, you could actually SAVE money on taxes? Even with the recently increased standard deduction, making itemizing for most Americans no longer an option, working with the Holston Foundation, you can make an impact on others’ lives through generosity and giving less to the government. I would encourage you to consider two options for giving: a charitable gift annuity and a donor advised fund.
Charitable Gift Annuities are a great benefit both to you and the ministry you are passionate about. With a Charitable Gift Annuity, you get a fixed income for life, the satisfaction of leaving a significant gift that will make a difference in others’ lives, and a potential reduction in your tax bill. Speaking of taxes, one should also consider that a portion of the annuity payments you receive for life will be partially tax-free too. The annuity removes the transferred assets from your gross estate, which could help with estate tax for federal and state purposes. When appreciated property is transferred in exchange for a gift annuity, capital gains tax liability can be significantly reduced.
A Donor Advised Fund (DAF) is often used by donors who wish to itemize their taxes rather than take the standard deduction. By contributing to the DAF at the Holston Foundation and directing distributions for both the year of contribution (which can be claimed on that year’s taxes), one can then make a gift the next year to the charity of their choice and take the standard deduction that year. Simply put, it takes advantage of itemizing and then alternately not itemizing.
Both options require an agreement with the Holston Foundation, which starts with a personal illustration helping you understand the tax implications and scenarios. To get started, simply click here, which will take you to the Foundation’s planned giving page where you can learn more and begin the process of setting up a Charitable Gift Annuity or a Donor Advised Fund.
Taxes are never fun. I recently heard a commercial for a tax preparation company that states they don’t even like filing taxes! But with careful planning, you can not only minimize taxes but also, with our organization’s help, do so much good in the process. It’s a win-win situation.
The Holston Foundation is here to help. Please let me know how we can assist you.