Tip 2: TiGiftFund offers creative alternative strategies that are eligible to receive QCDs. These include:
- Designated Funds – Where you specify the charity or charities up front. iGiftFund will make annual distributions to your chosen charities in accordance with your wishes. You can use this popular strategy for any type of charitable contribution, such as supporting your church, establishing a scholarship program at your high school, or endowing a charitable organization or charitable event in your
- Field-of-Interest Funds – Where you specify certain charitable interests. These can include broad categories such as arts and culture, historic preservation, the environment, health, and iGiftFund selects the charity that meets your intended field-of-interest.
- Unrestricted Funds – Where you leave the granting decision to iGiftFund’s Board of Directors to meet the needs of your community as they change over
Any of these three funding strategies can be endowed, meaning that distributions will be made to your favorite charities, in your name, virtually forever.
Tip 3: You can always take a normal distribution from your retirement plan, incur the tax liability, contribute the proceeds to a DAF, and mostly offset the federal liability tax with the qualified deduction. This strategy gives you the flexibility of a DAF, but the distribution may affect other taxes, such as your tax on Social Security income.
3. Take advantage of the increase in AGI limits on contribution of cash
The new tax law increases the AGI limit on contributions you make in cash from 50 percent of AGI to 60 percent. Again, the donor advised fund acts as your tax-smart philanthropic reservoir to offset the effect of windfall taxable events or fluctuating income.
4. Bunch itemized deductions into alternate years to meet increased threshold for itemization
A smart strategy for taxpayers whose qualified deductions will not be sufficient to exceed the new standard deductions thresholds is called “bunching.” Under this creative strategy, you double-up and aggregate eligible deductions, including charitable giving, into a single This increases your likelihood in that year of being able to itemize deductions, thus exceeding the new standard deduction thresholds. In subsequent years, you can elect to take the higher standard deductions.
Tip 4: Your DAF becomes your family’s “philanthropic reservoir, grants from which can provide steady and predictable support to your favorite charities over alternate years in a tax efficient manner. Charities appreciate the consistency this strategy affords.