Lilly Scholars and Doing Your Year-End Giving
There’s Still Time For Your Year-End Giving
The end of the year is just a couple of weeks away, but there is still time do your charitable giving. In fact, there may be no better time to do it than right now.
With the potential for drastic changes to tax laws, the tax benefits of your giving could be different next year. If you want to take full advantage of the current tax rules, there is still time to make a year-end gift that could “stretch out” your charitable giving for several years, and provide you with all of the benefits of the income tax charitable deduction for 2017.
How We Can Help This Year
- 1. Make your 2017 charitable gift now and decide where to give it later. One of our more popular types of funds, a donor advised fund, will allow you to make your tax deductible gift now and then distribute grants from your fund to your favorite causes, nonprofits, church or alma mater in future years.
- 2. Not sure what to give? With the end of the year so close, there are only a few options left but you still have time to mail in your gift, or use our secure website to make a gift using a credit or debit card. Or, you can consider gifting appreciated securities. The stock market has had a very strong year and gifting stocks is an easy way to make a gift that has tremendous benefits to you. Your gift can usually be made in just a couple of days and you are eligible for an income tax charitable deduction for the fair market value of the stock while avoiding the capital gains tax you would pay if you sold the stock outright.
What About Next Year if the Tax Law Changes?
Congress appears likely to increase the standard deduction to $24,000 per couple. If your other deductions are less than $24,000, then when you make a charitable gift you will only get an additional deduction when the amount of your charitable gift, added to your other deductions, exceeds $24,000. Most couples have less than $24,000 of deductions. Accordingly, they will be better off if they group their charitable giving and make contributions to charity every few years rather than every year.
What does that look like for one happy couple that typically gives $15,000 to their favorite charities each year? Let’s assume that Happy Couple, in addition to what they give away, also has another $15,000 in deductions that they currently itemize. Here’s how “grouping” their annual charitable gifts might work to their benefit:
Happy Couple Scenario Under Proposed Tax Rules
Without “Grouping” Charitable Gifts
|Proposed Tax Rule Allows $24,000 in Standard Deduction||Itemizes and receives $30,000 deduction ($15,000 to charity; $15,000 in other deductions)|
|Total Deduction Over 3 Years Under Current Law||$90,000 ($30,000 per year x 3 years)|
“Grouping” Charitable Gifts
|Year 1||Couple “groups” three years of charitable giving ($15,000 per year x 3 years = $45,000) all at once and still has $15,000 in other deductions. Total deduction of $60,000|
|Year 2||Takes Standard $24,000 deduction|
|Year 3||Takes Standard $24,000 deduction|
|Total Deduction Over 3 Years Under Proposed Law||$108,000|
If this new tax law passes as proposed, and if the circumstances are right for you, grouping your charitable gifts may make a lot of sense. And this is where the Community Foundation can help you make your giving more strategic. Create a donor advised fund with your grouped charitable contributions and let us know when and where to distribute grants from your fund in the future.
If you’re looking to make a gift before the year-end, please contact me so that we can help you put together a charitable plan that will make the most impact in our community and help you accomplish your individual charitable and financial goals.
Linda S. Speed, JD
President and CEO
The Community Foundation of Southern Indiana does not give tax advice and recommends that you speak with your professional advisor about your unique circumstances.
CFSI Announces 2018 Lilly Scholars!
Congratulations to four graduating seniors in Clark and Floyd counties who will receive the generous, well-earned gift of four-year scholarships as the Community Foundation of Southern Indiana’s 2018 Lilly Endowment Community Scholars!
2018 Lilly Endowment Community Scholars
- Thomas Beimrohr, Jeffersonville High School
- Sarra Debbabi, Jeffersonville High School
- Ethan Furnish, Our Lady of Providence High School
- Emily Mathews, New Albany High School
In addition to full tuition to an accredited public or private nonprofit college or university in Indiana of their choice, the students will receive a $900 annual stipend for books and equipment.
The Community Foundation of Southern Indiana administers the Lilly Endowment Community Scholars program locally. Students in all accredited public and private high schools in Clark and Floyd counties were invited to apply. Applications from each county were reviewed and scored by an independent committee of civic volunteers who assessed applicants in a blind review process.
“Congratulations to all of the finalists and thank you to Lilly Endowment, Inc. which has been incredibly supportive of our foundation and this community,” said Linda Speed, president and CEO of the Community Foundation. “Because of the generosity of this scholarship program we are able to extend these life changing, four-year scholarships awarded to deserving students in Clark and Floyd counties who will go on to pursue their education and achieve their goals.”
Scholarship Applications Now Open!
Helping Students Pursue Their Dreams and Goals
High school seniors throughout Clark and Floyd counties can apply now to receive generous, well-earned scholarships through the Community Foundation of Southern Indiana.
The Foundation’s scholarship program consists of over 75 scholarship funds established by donors desiring to assist students in Southern Indiana. Because of the generosity of these donors, over 100 scholarships are awarded to area seniors – helping them pursue their education goals. While many of these awards are available through the local high schools and colleges, students may apply for specific scholarships directly through the Foundation’s website through January 31st.
Students interested in learning more are invited to visit the scholarship section of Foundation’s website www.cfsouthernindiana.com.