SOUTHWEST LOUISIANA (KPLC) - It's the time of the year where people are busy shopping, but it's also time to remember our local nonprofits are in need of your help.
'Tis the season of 'End of Year Giving' and there's still time to donate.
President and CEO of the Community Foundation of SWLA, Sara Judson said people often give at the end of the year because they realize it would help them to make some tax-deductible contributions to reduce their taxable income.
"Sometimes they have received a bonus, sold a business or have appreciated stock and they want to make donations but aren't sure just where they want to give," Judson said. "Also, the amount may be large enough that they want to know it is something really important to them and that is a big decision to make quickly. So, a Donor Advised Fund is a good option in these situations."
Judson described a Donor Advised Funds as flexible, easy and efficient, but she says there is a minimum required to create one.
"Minimum of $10 thousand to start," she said. "The tax deduction can be taken now with a decision on where the funds are donated later. The DAF can also be compared to the effects of a private family foundation. You are able to contribute a lump sum and always add as you see fit, and you are in control of how those funds are spent, so very similar to a foundation without all of the administrative burdens."
And, CPA Chris Klein said there's an advantage to giving now in 2017.
"Standard deduction doubling to $12 thousand for single and $24 thousand for Married Filing Jointly," Klein said. "Tax brackets widening so more likely to get a deduction in a higher bracket for 2017 compared to 2018."
Judson said there are also ways for you to give the gift that keeps on giving.
"Setting up plans to give now as well as giving through your estate can be done at any time of the year," she said. "It is in an endowed fund that goes on forever, it can make a difference for many years after the person's life."
And for some senior citizens, there's a charity route, it's called a Required Minimum Distributions specifically for people over 70 ½. Judson said, "They can use some or all of their Required Minimum Distribution to go directly to a charity – without taxes being taken out of the donation. So, causes the person cares about can receive more money."
If you are interested you can learn more by emailing Sara Judson at SJudson@FoundationSWLA.org or give her a call at (337) 491-6688 or click HERE for more information.