10/24/2017

Act Now for Potential Year-End Tax Savings!

Tags: Legacy, Philanthropy, Federation

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Read now for our guide to the advantages of giving before December 31, 2017. Tax savings related to charitable giving may change and we want you to get the most benefit possible while you can.

Year-End Gift Ideas

As you review your 2017 year-end tax planning, consider making use of the income tax charitable deduction. Your year-end gift to the Jewish Federation of Cleveland may significantly reduce your income taxes, while providing meaningful support for the beneficiaries of Federation agencies and programs.

GIFTS OF CASH

If you itemize, you may lower your yearly income taxes simply by mailing a check to the Federation by December 31. There is no easier way to secure a year-end charitable deduction and support the Jewish community at the same time! Make sure your envelope is postmarked by December 31; if it is, your gift will be deductible for 2017.

Gifts of cash are fully deductible – up to a maximum of 50% of your adjusted gross income. For example, if your adjusted gross income for the current year is $100,000, up to $50,000 of charitable gifts may be deducted. Any excess can generally be carried forward and is deductible over as many as five subsequent years.

If your employer has a matching gift program, enclose the form along with your check, or let us know and we will be happy to follow up.

GIFTS OF SECURITIES

A gift of appreciated securities generally offers a two-fold tax savings. First, because the Federation is a charitable organization you avoid paying any capital gains tax on the increase in the value of the securities you transfer to the Federation. Second, you may receive an income tax charitable deduction for the full fair market value of the securities at the time of the gift.

With the stock market at or near an all-time high, the time is now to donate appreciated securities held for more than one year. It is easy to transfer stock to the Federation to pay your campaign pledge, to add to a donor advised fund or create a new one. With possible tax rate changes on the horizon, potential tax benefits may be greater now than in the future.

Gifts of appreciated securities are fully deductible – up to a maximum of 30% of your adjusted gross income. Any excess can generally be carried forward and is deductible over as many as five subsequent years.

Mutual Fund units receive the same tax advantages as donations of appreciated stock. However, because of the complexities involved in the transfer of mutual fund shares, we encourage you to begin the transfer process well in advance of December 31, 2017.

If you would like to contribute appreciated securities, contact Kari Blumenthal at kblumenthal@jcfcleve.org or 216-593-2893 for information.

DONOR ADVISED FUNDS

A donor advised fund is a named fund of the Jewish Federation of Cleveland in which you, as the donor advisor, retain the privilege to make recommendations for charitable grants from the fund.

You can create a donor advised fund by making an irrevocable gift of cash, securities, or other property to the Federation. You may receive an immediate income tax deduction for the amount of the initial gift and on each subsequent gift to the fund.

The fund is invested and generally no tax is paid on the income generated by the fund. You may make charitable grant recommendations to qualified public charities from both income and principal. If you’d like, you may also include your spouse or children as advisors to the fund.

IRA CHARITABLE ROLLOVER

Individuals 70 ½ and over may distribute up to $100,000 per year tax free from an Individual Retirement Account (IRA) to the Jewish Federation of Cleveland or other qualified charity. These distributions may count toward your Required Minimum Distribution. The potential tax savings is available both for donors who itemize and those who do not.

In recent years, hundreds of donors have taken advantage of the IRA Charitable Rollover, benefitting not only themselves, but our Jewish community.

You must make a distribution from your IRA directly to the Federation. It may not be distributed to a donor advised fund, supporting foundation, private foundation, charitable remainder trust or charitable gift annuity, but it may be used to create an endowment fund.

You may designate the distribution for a specific use at the Federation, including the Campaign for Jewish Needs, a Lion of Judah Endowment or FOREVER Fund, or a special endowment fund to support an area of interest to you in the Jewish community.

Click here for a sample letter of instruction to your IRA administrator, the Federation's IRA determination letter, and Frequently Asked Questions about IRA Charitable Rollovers

CREATE YOUR JEWISH LEGACY

Have you included the Federation in your estate plan? A planned gift of any size will continue to make an important difference in our community for future generations.

Bequests

Giving through your estate plan is often easy. The Federation may be named as a beneficiary in a will or trust, often by codicil or amendment without the need to redraft the will or trust. You can specify how you would like the Federation to allocate your estate gift. For instance, you may direct that your gift be used to augment the Federation’s unrestricted endowment fund in a specific field of interest, or establish a FOREVER fund to perpetuate your annual contribution to the Campaign for Jewish Needs.

Each of these designations enables the Federation to provide support to people in our community and around the world.

Retirement Assets & Insurance Plans

You may make the Federation the beneficiary of all or part of your retirement plan at your death, or you may make the Federation the owner and beneficiary of a life insurance policy.

Ask your life insurance agent or retirement plan administrator for the appropriate forms.

Retirement assets may be the most heavily taxed inherited assets in your portfolio and make an excellent charitable gift choice.

For Further Information

Please contact Carol F. Wolf at 216-593-2805 OR toll free at 888-467-1125, or email or cwolf@jcfcleve.org. All inquiries are confidential.

Thank you for your support at year-end and throughout the year.


This material is presented for informative purposes only and should not be construed as legal, tax, or financial advice. When considering gift planning strategies and year-end gift opportunities, you should always consult with your own legal, tax, or financial advisors.

The Jewish Federation of Cleveland (license # CH22328) is registered to solicit charitable donations within Florida and provides disclosure as required by Chapter 496 of the Florida Solicitation of Contributions Act as follows:

“A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL INFORMATION MAY BE OBTAINED FROM THE DIVISION OF CONSUMER SERVICES BY CALLING TOLL-FREE (800-435-7352) WITHIN THE STATE OR BY VISITING WWW.800HELPFLA.COM. REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL OR RECOMMENDATION BY THE STATE.”


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