CFT November Advisor Connection: Bundling Gifts, Substantiation Requirements, Disaster Relief Giving, and Fund Types Offered at CFT
Bundling Gifts, Substantiation Requirements, Disaster Relief Giving, and Fund Types Offered at CFT View this email in your browser
Year-End Advice Worth Repeating: Bundling Gifts
The timing of charitable gifts is something that shouldn't fall off the radar, so it’s worth a regular reminder about bunching, or “bundling,” gifts to charities. The ripple effects of tax reform have meant that just 10% of taxpayers now itemize deductions, down from 30%. A smart strategy for your charitable clients who want to maximize deductions under the new tax laws is to make two or more years’ worth of charitable contributions in a single year. This can push taxpayers over the itemizing threshold to reap the benefits of deducting the full value of their donations. Opening a fund at CFT allows donors to receive an immediate charitable tax deduction for their gift, and the ability to make grant recommendations to their selected charities over time.
Did you know that CFT can open a donor-advised fund in under an hour? To begin the process of opening a fund, please fill out our Fund Information Form.
Substantiation Requirements: Still Relevant
As 2019 draws to a close, now is a good time for a refresher on gift substantiation requirements as your clients plan their year-end charitable giving activities. Since last year, when the Department of Treasury released its final regulations for substantiation and reporting of deductions for charitable contributions, gift substantiation has remained a hot tax topic during giving season. Key areas include:
Definition of a qualified appraiser (this provision took effect in 2019)
Requirements for gifts of partial interests
Appraisal requirements for charitable remainder trusts, even if the trust holds marketable securities
Requirement to attach an appraisal for gifts of real estate valued over $500,000
Thank you for supporting local disaster relief efforts!
On October 20, 2019, nine tornados moved through Dallas/Fort Worth, leaving a 15-mile path of destruction through North Dallas and Richardson. No lives were lost, but many schools, homes and businesses were damaged and/or destroyed and will need assistance with recovery.
To support the community’s needs following this disaster, CFT has established the Dallas Tornado Recovery & Relief Fund. Donors can make online donations or recommend a donor-advised grant to support immediate needs and rebuilding efforts across North Texas. By supporting this effort, you are contributing to getting individuals, families, and schools stabilized and back on their feet. To assist your clients with questions about resources and information on the Dallas Tornado Recovery efforts visit our website HERE.
Checklist: Types of Funds at Communities Foundation of Texas
CFT offers a variety of funds to meet your client’s giving needs. Keep this checklist handy as you meet with philanthropic families and nonprofit organizations.
Donor-Advised Funds
A donor-advised fund enables your client to establish a specific account for charitable giving. Clients make tax-deductible contributions of cash or other assets to the fund, and then they can recommend grants to favorite charities over time.
Scholarship Funds
When you establish a scholarship fund with Communities Foundation of Texas, you give deserving students the opportunity to pursue their dreams while achieving your own charitable goals. Scholarship funds can be structured to benefit students at any education level or institution. Whether you want to establish a legacy or honor a loved one, give back to your community or your alma mater, we will work with you to create a scholarship that is uniquely your own.
Business-Advised Funds
When you create a business-advised fund, we can support your company's goals with a full spectrum of services, including grantmaking, due diligence, site visits, and community updates. You work with our staff to identify ongoing uses for the fund, targeting the issues you care about most. Grant awards are issued to nonprofits in the name of the fund (or anonymously if you prefer). It's a simple, powerful, highly customized approach to corporate giving.
Designated Funds
A designated fund allows a client to direct giving to a specific agency or purpose. Over time, the foundation's staff manages distributions from the fund according to terms established by the donor.
Non-Profit Agency Funds
Nonprofit organizations establish a fund with us to grow assets to meet both current and future needs. Nonprofit agency funds provide a simple and efficient way to build an endowment or a reserve — and help create sustainability — for the organization. Nonprofits look to our board of trustees for strong investment oversight services and use our staff to manage all of the administrative details. Plus, our staff can also help you develop planned giving programs and assist with gifts involving complex assets. All of this frees the nonprofit to focus on what it does best in the community.
Field of Interest Funds
Clients who want to target giving to specific areas of community need (such as education, health, environment, or the arts) can establish a field of interest fund to establish parameters for grantmaking under the ongoing guidance and expertise of the CFT staff.
To learn more about which fund may be right for your clients, visit HERE, or contact:
