By Lauren Batten, Director of Advancement
With the new year came comprehensive tax law changes made by Congress that begin in 2018. Given the broad nature of the changes, you may be uncertain about how the new laws may affect your plans to support the causes you cherish. Fortunately, the charitable deduction was the only widely used deduction that was not limited under the new law. In some cases, the tax benefits of making charitable gifts were even expanded.
Some of the most powerful philanthropic tools available to Country Day’s donors come in the form of deferred gifts. The benefits of deferred giving include tax savings, increased income, and plans to transfer wealth to one’s heirs while supporting Country Day students and faculty simultaneously. The Oak Society recognizes those who plan to include Country Day in their wills or estate plans. We are deeply appreciative to Oak Society members for their foresight and extraordinary generosity in helping to ensure our students’ success beyond their lifetime.
Giving options to consider:
Giving cash by check, credit card, or other means of transfer remains the most common way to make a charitable contribution. The new tax law continues to encourage gifts of cash and expands the limit on the amount you can deduct.
Given the current environment, many donors are finding it advantageous to make gifts of securities. If you own stock, mutual funds, or other securities that have increased in value, this route may be a good one to consider. If the value of a security is less than its cost, however, it’s usually best to sell that security and make a gift with the resulting cash.
Gifting other property that has increased in value—such as real estate or illiquid business interests—can provide meaningful tax savings.
Retirement Funds and Life Insurance Gifts
Tax benefits from gifting retirement account assets remain substantially unchanged under the new tax code. Life insurance policies provide another good option.
Give and Receive Income
Did you know that you can make a gift today and also receive income from the gift for yourself and/or another person? The income can be received for life or a particular term. You can make special gifts while also contributing toward your retirement, supporting parents or other loved ones, or providing funding for educational expenses or other special family needs. These plans can offer immediate income and/or capital gain tax savings.
Make Gifts over Time
You may even make charitable gifts, such as a charitable lead trust, for a period of time before the assets funding the gift are returned to you and/or your heirs. When the assets pass to other beneficiaries after the charitable gifts are completed, the value of the gifts from the trust will serve to reduce or eliminate federal and/or state income, gift, and estate taxes that might otherwise be due.
Making Future Gifts
There is also good news regarding future gifts in the new tax law. Even fewer estates will be subject to estate tax. Giving through your will or living trusts are convenient ways to make gifts of a lifetime.
"Country Day has been such an important part of my life. Including Country Day in my estate plans through a gift of life insurance was a logical and prudent way for me to give back to a place that has impacted my family and me in so many positive ways.”
– Richard Worrell ’91
If you would like to explore how you might support Country Day in ways that help you meet your overall planning goals, please contact Lauren Batten, Director of Advancement, at (704) 943-4539 or email@example.com.