Giving Options

You don’t have to wait until the end of the year to think about how giving to charity might address some of your tax issues. In fact, the best time to think about giving is now. With the new tax laws in effect, relatively few people will need to itemize their taxes. So beyond the charitable deduction for itemizers, what are some of the other tax benefits of charitable giving.

  • CAPITAL GAINS: If you are wondering what to do with depreciated stocks or other securities you hold, sell them, take the tax deduction for the loss, and give the proceeds to charity. The tax benefit from the charitable donation may further offset any other capital gains.

  • BUNDLING: Instead of taking just the standard deduction on your tax return, consider doubling or tripling your charitable contributions in alternate years. This way, you may be able to deduct enough to itemize every second or third year. Setting up a donor advised fund at the Winona Community Foundation will allow you to make distributions to the charities you love during the years you are not itemizing.

  • CHARITABLE GIFT ANNUITY: If you would like to make a contribution and receive a charitable income tax deduction this year, but can’t afford to give up the income from a particular asset, consider a life-income gift – a charitable gift annuity or charitable trust. Based on your age and IRS calculations, you could receive income for life for yourself and/or another individual, and receive a charitable income tax deduction as well.

  • CAPITAL GAINS on a HOME: If you have a vacation home or other real estate you are not using, plan now for a gift of the property next year and you may not only avoid any capital gains tax, but also receive a charitable deduction for the property’s full fair-market value.

The decision ultimately depends on each individual’s particular financial and tax situation. Contact your tax advisor to determine what will work to your best advantage.

Gifts of Stock

Appreciated stock is a smart way to give. When you contribute stock directly to Winona Community Foundation you will avoid capital gains tax and still receive the full market value of the stock for tax purposes. Stock transfers normally take only a couple of days but may take longer during busy times such as the end of the year.

It is always best to contact us before making a transfer. This way we can ensure it is processed and acknowledged in an accurate and timely manner. The following information is all your broker or agent needs to know to complete a transfer from your account to that of the Winona Community Foundation.

Stock Infomation

  • Financial Institution: WNB Financial Trust Department

  • (507) 494-9269

  • DTC #: 2039

  • Institution #: 94952

  • Account #: 11053-c (For further credit to WNB Financial F/B/O WN1773 Winona Community Foundation)

Bundling

With higher standard deductions for taxes starting in 2018, some donors are choosing to bundle their giving in order to continue giving at the same levels before. This means donating two or more years’ worth of giving at one time and claiming the charitable deduction that year. By using Donor Advised Funds (DAFs), a donor can bundle a donation in one year, receive the charitable deduction and donate to nonprofits over time.

How Bundling Works

  • Create a Donor Advised Fund (DAF)

  • Donate two or more years’ worth of giving. Claim a charitable deduction in that year.

  • Donate to your favorite charities over time.

Mutual Fund Shares

Call WCF at (507) 454-6511 to get the easy transfer instructions. All mutual fund shares require about 3 weeks to transfer to WCF and complete the gift, so start now if you plan to gift mutual fund shares. Gifts of mutual fund shares provide the same tax benefits as stock gifts. To count as a charitable income deduction, gifts of mutual fund shares must be received into WCF’s account before the close of business on December 30th.