Memo to Fund Donors RE: 2016 Year-End Tax Considerations
December 16, 2016
To: Community Foundation Fund Donors and Board of Governors
RE: 2016 Year-End Tax Considerations
Thank you for your contributions to our community through the fund you established at The Community Foundation. It’s an honor to serve as a philanthropic advisor and partner to our area’s most generous individuals, families, businesses and organizations.
Because Community Foundation fund donors are among our community’s most charitable, we’d like to highlight recent proposed tax legislation in which the tax value of charitable contributions may be higher right now than they will be in future years. You may wish to consider the following points regarding additional gifting before year end. According to foundation advisors:
Tax rates may go down next year based on proposals from the Republican House Leadership and Presidential transition team. Should the top rate decrease from 39.6% to 33%, the total tax savings from a charitable contribution would be reduced.
The charitable deduction may be limited next year. Current proposals put a cap on itemized deductions of $200,000 for married taxpayers filing jointly and $100,000 for single taxpayers.
You may have built in gains in the form of appreciated securities. Appreciated securities are a very tax effective way to make charitable donations to increase your fund.
The Community Foundation offers effective ways to capture a 2016 deduction with the ability to defer the distribution to nonprofits in future years:
Through a contribution to The Community Enrichment Fund of The Community Foundation. (Foundation-driven strategic local giving).
By establishing a new named fund that supports an issue or organization you feel passionately about.
If you have an existing Donor Advised Fund with The Community Foundation, simply make a contribution.
Limitations on the deductibility of donations apply: 50% of AGI for cash gifts to a public charity and 30% (or 20% in certain cases) for stock gifts. Your professional advisor can confirm tax benefits and deductibility for your personal portfolio.
To donate assets:
Make your check payable to The Community Foundation. Mail it to PO BOX 208, Fredericksburg, VA 22404 or drop it off at 725 Jackson Street, Suite 114, Fredericksburg, VA 22401
Please ask your financial advisor to contact us for wiring instructions. Email email@example.com or call 540 373-9292.
Teri McNally, Executive Director and Lisa Biever, Director of Donors Services will be working through year-end and are available to help at 540 373-9292.
Other Year-end Planning Items
For those aged 70½ or older, it's once again possible to make tax-favored charitable gifts from traditional and Roth IRA accounts. To learn more, call us or read details at www.cfrrr.org.
Scholarships Tax Credits
The Community Foundation of the Rappahannock River Region is an approved scholarship foundation for the Virginia Department of Education. The foundation is authorized to process 65 percent state tax credits (on top of current state and federal tax deductions) for monetary and marketable securities donations to nonprofits that, in turn, provide independent school scholarships through the Virginia Department of Education’s Virginia Education Improvement Scholarships Tax Credit Program.
To initiate a gift through this program, please call 540 373-9292 or contact Lisa Biever firstname.lastname@example.org or Ali Thomas email@example.com
Visit our website to learn more: www.cfrrr.org
Foundation staff will be available 9:00 to 5:00 through Thursday, December 29th.
The Community Foundation will be closed on Friday, December 23rd, Monday, December 26th and Friday, December 30th.