04.23.18

Tax reform and its philanthropic implications

On our radio show this morning, Brian Nuttall – a shareholder with Kingsbery, Baris, Vogel, and Nuttall CPAs – and former foundation Trustee Shelly Merritt – an attorney with more than 20 years' experience representing individuals, families, and businesses – explore recent tax legislation and its implication for philanthropy with our host Jim Williams, Dean Emeritus, University Libraries for CU Boulder, and a Trustee for the Community Foundation Boulder County.

 
According to Investment News, with Congress passing the most sweeping tax law changes in a generation, providers of Donor-Advised Funds (DAFs) – including your Community Foundation – are seeing an uptick in new accounts, contributions, and grants to charitable organizations.
 
Today, only about 30% of taxpayers itemize their deductions, according to the IRS. And fewer than 10% of taxpayers are expected to continue to itemize as a result of the new tax law that will boost the standard deduction to $12K for individuals, and $24K for married couples. Those who take the standard deduction, rather than itemizing, cannot deduct their charitable contributions from their income taxes.
 
As a result, Shelly said, it's not necessarily worthwhile for people to itemize deductions which, in turn, implies the likelihood that fewer people will make charitable gifts. But if people are inclined to give charitably anyway, DAFs – which can be used in life and after death – are a preferred vehicle to do so, allowing fundholders to perhaps make a big gift to a DAF in one year, then take the standard deduction in the next year, and decide how to pay out the fund in subsequent years. 
 
Continuing the conversation on KGNU's "A Public Affair" about what donors need to know to make smart charitable giving decisions in the current climate – and keep giving alive and well in Boulder County – Brian also described appreciated public securities as another great way to donate to charity while boosting tax savings.
 
If you missed the broadcast and you'd like to learn more, listen here ... or find the podcast on iTunes and other podcast apps by searching “Community Foundation Boulder County.”