When you donate to a public charity, you may be eligible for a tax deduction—if you itemize your deductions. However, changes to the tax law in 2017 resulted in many taxpayers losing the benefit of deducting charitable contributions. One strategy to regain that benefit is bundling multiple years of donations into a single year. This approach can help you exceed the standard deduction threshold when combined with other itemized deductions like mortgage interest and state and local taxes. A Donor Advised Fund (DAF) is a powerful tool for bundling gifts. With a DAF, you receive an immediate tax deduction in the year you contribute—and only need one receipt. You maintain control over when and how your donations are distributed to your favorite eligible nonprofits in future years, allowing them to benefit from your continued support. Contact us if you want to learn more.
Family foundations are built on a desire to create lasting impact, but administrative burdens, succession challenges, and regulatory requirements can make giving more complicated than necessary. Donor-advised funds (DAFs) offer a streamlined, cost-effective alternative that allows families to focus on philanthropy instead of paperwork. Community Foundations are a great resource for families looking to create a charitable legacy through the use of a DAF. The Winona Community Foundation can advise on charitable work happening right here in your own backyard! Also, be aware that there are tax changes going into effect in 2026, so establishing or adding to a donor advised fund in 2025 may be a good option for those that are charitably inclined and want to maximize tax benefits before the laws change.
The Winona Community Foundation offers a unique and meaningful opportunity for donors to make a lasting impact—both during their lifetime and beyond. We provide personalized service and local expertise, helping you connect with causes that matter most in our community. We can guide you through tax-advantaged giving strategies. Our approach is flexible and inclusive, whether you’re an individual, family, business, or nonprofit. We also offer community funds that anyone can contribute to, making it easy to be part of something bigger. With a deep understanding of the local nonprofit landscape, we pool and invest resources to amplify impact, always with a focus on strengthening the region we call home. Our mission says it best: The Winona Community Foundation is a catalyst for igniting generosity and building the vibrant and enduring place we call home. Contact us if you want to be part of shaping a brighter future for Winona—together.
The short answer is, YES! In honor of Mental Health Awareness month, let’s talk about giving and the connection to mental health. There are many well-documented studies that show the positive impact giving has on the giver. According a Cleveland Clinic study, any act of altruism (a selfless act for others) has positive mental and physical benefits. These include lower blood pressure, increased self-esteem, lower incidents of depression, and decreased stress. In fact, studies show that giving regularly may even lead to a longer life and greater happiness!
There are lots of different ways to give – time, talent, and treasure. And Winona has many great causes to support whether through volunteering or making charitable donations. The Winona Community Foundation is a great resource to learn about various opportunities to give and what are some of the bigger needs in the community. The Foundation can also help you decide “what” to give to maximize your charitable giving, especially if you are concerned about income or capital gains taxes. If you want to improve your overall health through the act of giving, come visit us at the Foundation!
A legacy gift, also sometimes called a planned gift, is a charitable donation arranged during a donor’s lifetime but whose benefits are realized by the nonprofit organization after the donor’s passing. It’s a way for individuals to leave a lasting impact on the causes they care about.
Think of it as including a favorite charity in your long-term financial or estate plan. These gifts can take many forms. A bequest in your will is generally considered one of the easiest ways to leave a legacy gift. Estate planning professionals are very familiar with charitable bequests and can easily help you incorporate one into your will or trust. While a bequest is often the simplest approach, other options exist, such as naming a charity as a beneficiary of a life insurance policy or a retirement account. You can connect with us at the Winona Community Foundation if you want to talk about leaving a legacy to your community.
The first thing you should ask yourself before making a donation is, “Do I want to support this cause?” You should not feel obligated, coerced, or forced into making a donation. Giving should be a positive experience. If you are concerned a cause is not legitimate, there are different ways to confirm it. An easy option is to check online resource such as irs.gov’s tax-exempt organization search function, guidestar.org, or nonprofit review sites such as charitynavigator.com and give.org. You can always ask the charity for a copy of its IRS letter of determination as well. These sites tend to focus on larger charities. If you are looking at a local cause, contact your community foundation. Staff there are familiar with the various nonprofits in your community and can tell you if the effort is a public charity eligible to receive tax-deductible contributions. They may even be able to connect you to someone at that organization. If you are not concerned about a tax deduction, whether a cause is a public charity or not doesn’t matter. What matters is that you care about the cause and have confidence in the people working on it.
It’s tax season so let’s talk about deductions for cash donations. If you are itemizing, you need to have proper documentation for your charitable contributions. You must either have a receipt from the eligible 501(c)3 public charity or a bank record that includes the name of the qualified charity, the date of the contribution, and the amount. If you made a gift of $250 or more, the IRS requires you to have a “contemporaneous written acknowledgement” from the charity. That means you must have it in hand prior to filing your taxes. It must include the charity name and amount of gift and whether you received any goods or services as a result of the contribution (such as seats at a gala). If you did, it must include the fair market value of those goods & services. So, if you’re working on your taxes and don’t have a receipt with this information, contact the nonprofit and request it. Electronic and emails count.
In Minnesota, taxpayers who do not itemize deductions on their federal income tax return are eligible to take a deduction for charitable contributions on their state return. Minnesota’s Charitable Deduction provides a tax deduction of 50% of total charitable contributions over $500. To be eligible, you may not have completed MN Schedule M1SA. The same IRS acknowledgement requirements apply for gifts of $250 or more.
Since I’m not an accountant or attorney, it is important for you to work with your accountant or tax advisor regarding your personal situation. You can also reference IRS publication 526 for guidance.
The common mission of a Community Foundation is to enhance the quality of life in a local area. A community foundation is a tax-exempt, independent, nonprofit organization that provides support — primarily for the needs of the geographic community or region where it is based — from funds that it maintains and administers on behalf of multiple donors. They are governed by a volunteer board of directors of community leaders and most employ professional staff.
Unlike most charities, a community foundation does not provide direct services or programming. Instead, they carry out this broad mission by building permanent endowment funds as well as non-endowed funds established by local individuals, families, businesses, or charitable institutions. The funds are invested back into the community’s nonprofits through grants. They also serve as a resource to donors who may need advice or assistance on how to maximize their charitable giving. This includes answering questions on the best assets to make a gift, how to include charitable giving in estate plans, or how to evaluate a charity. Ultimately, a community foundation is a resource and tool for charitable giving whether directly to or through the foundation.
