Even with late November’s rally, 2022’s rough stock market may still be a concern for some. Chances are, though, that not all of your holdings have had an unusually down year. Gifts of appreciated stock to your donor-advised fund or other types of funds at the Winona Community Foundation is still one of the most tax-savvy ways to support your favorite charitable causes because capital gains tax can be avoided on the appreciated stock.
If you are over 70 ½, consider a Qualified Charitable Distribution
A Qualified Charitable Distribution (“QCD”) is a very smart way to support charitable causes. If you are over the age of 70 ½, you can direct up to $100,000 from your IRA to certain charities, including a field-of-interest, unrestricted, or scholarship fund at the Winona Community Foundation. If you are over the age of 72, QCDs count toward your Required Minimum Distribution (RMD) for the year. That means you avoid income tax on the distributed funds. We can work with you and your advisors to go over the rules for QCDs and evaluate whether the QCD is a good fit for you.
Use your donor-advised fund to do as much good as possible
The staff at the Foundation can help you maximize your already-established donor-advised fund or set up a donor-advised fund if you are not yet a community foundation fundholder. Please reach out to tus to learn more about how “bunching” at year end can maximize the tax benefits of your donor-advised fund, and at the same time ensure that nonprofits are supported as demands on their missions continue to grow in choppy economic waters. Grantmaking from donor-advised funds continues to rise, especially as donors catch on to the ways a donor-advised fund can help with tax planning and, importantly, keep your giving levels consistent even in your lower income years.
Watch the calendar
An important note: Please review the deadlines below to find out when certain transactions must occur to be completed during this tax year, including checks to a fund at the Winona Community Foundation.
Mutual Fund Shares:December 9. These transfers can take up to three weeks to complete. The IRS will not consider the date of your request, only the date it was completed.
Stock Donations:December 16 (recommended). These transfers generally take one to three days, but volumes may slow the process down. The IRS will not consider the date of your request, only the date it was completed.
Qualified Charitable Distributions (QCDs):December 28 by 4:30 PM. Preferred to ensure timely processing. Banks will not accept deposits past 11 AM on Friday, December 30.
Cash, Check or Online Donations:December 28 by 4:30 PM. Preferred to ensure timely processing. Banks will not accept deposits past 11 AM on Friday, December 30.
Fund Holder Deadlines:
Grant requests over $5,000:December 14 by 5 PM. This deadline is for requests over $5,000. These requests will need board approval.
Grant requests $5,000 and below:December 20 by 5 PM. This deadline is for requests $5,000 and below.