Tax Wise Charitable Giving as Simple as 1, 2, 3
The April 15th tax deadline is in the rear-view window. As you review your 2014 activity and filings, did you maximize available tax deductions and credits? By partnering with the giving experts at the Community Foundation of Greater Des Moines and your Foster Group financial advisor, meeting your charitable giving goals while maximizing your tax benefits, can be as simple as 1, 2, 3.
1. Establish a Donor Advised Fund to reduce estate taxes.
Donor Advised Funds with the Community Foundation of Greater Des Moines can act as your charitable savings account. To open a Donor Advised Fund you contribute cash or assets and receive a tax deduction for your gift. By opening a Donor Advised Fund with the Community Foundation you may also be eligible for the Endow Iowa Tax Credit program, a 25% state tax credit. The assets in your fund are then invested by your Foster Group financial advisor to grow your chartable dollars and impact. Donor Advised Funds are very personal and flexible. You recommend grants from your Donor Advised Fund to the causes and communities you care about while the Community Foundation handles the administrative details of facilitating the gift.
2. Give to a qualified Endow Iowa fund and receive a 25% state tax credit available exclusively through Iowa community foundations.
The Endow Iowa Tax Credit program promotes gifts to qualified permanent endowments by awarding up to 25 percent of the amount donated as a state tax credit when making a gift through Iowa community foundations. Endow Iowa provides an opportunity to make a gift of sustainable support to the causes and communities you care about while receiving a tax credit in recognition of your investment in the future of Iowa charities.
The illustration below provides an example of the potential tax liability and tax benefit available when making a $10,000 gift to an Endow Iowa qualified fund.
Joe & Mary Taxpayer: $10,000 Endow Iowa Contribution
|Tax Liability||Without $10,000 Endow Iowa Contribution||With $10,000 Endow Iowa Contribution||Tax Benefit||EffectiveBenefit|
Assumptions: Married Filing Jointly, $250,000 W-2 income from one spouse is only source of income, only itemized deductions (other than Endow Iowa contribution) is state income tax, $15,000 home mortgage interest and $6,000 real estate taxes. Federal and Iowa income tax liabilities computed on accrual basis to account for cross-deductibility of income taxes.*
3. Do I hold an asset that I could gift to charity and maximize tax benefits?
You have worked with your Foster Group financial advisor to ensure you have developed a financial plan which includes diversified assets. Your charitable giving plan is no different. Our team of giving experts can assist in facilitating a variety of gift types to support the causes you care about while benefiting from maximum tax benefits.
To learn more about partnering with the Community Foundation in meeting your charitable goals reach out to your Foster Group financial advisor or visit us at www.desmoinesfoundation.org.
PLEASE NOTE LIMITATIONS: Please see Important Disclosure Information and the limitations of any ranking/recognitions, at www.fostergrp.com/info-disclosure/. A copy of our current written disclosure statement as set forth on Part 2A of Form ADV is available at www.adviserinfo.sec.gov.