Thanks to you, the Catholic Community Foundation of Minnesota was able to grant nearly $17M to our community in the 2019 fiscal year. This is only possible with your support. We are so grateful to you. As we head into the holiday season and you consider your charitable giving for the end of this taxable year, please keep the following […]
With the adventures of summer behind us, the fall season calls us back to routine — back to our plans. It’s comforting to have a plan. A plan removes the stress and anxiety of the unknown. It gives us a roadmap, and by following it, we trust we’ll achieve our goals.
In our more than 25 years of ministering to Catholics and their philanthropy, we’ve come to learn that there’s one goal everyone shares: giving well. But planning for this goal can sometimes feel overwhelming. We often hear people say, “There is so much need. How can I be sure my philanthropy is making a difference?”
Patrick Murry, CPA, is a partner at Murry & Associates, LLC, where he specializes in assisting individuals and closely-held businesses with their tax planning, preparation, and compliance needs. He serves on the finance council at Holy Name of Jesus in Wayzata. Below, Patrick provides four tips you can use to maximize your charitable investment with a donor advised fund.
I’ve always appreciated the dual meaning of the word “talent.” In the Bible, a talent is a unit of monetary value. Today, it refers to our gifts and skills. Both meanings apply when it comes to giving. And, you can give either form of talent to benefit the common good.
But how you give your talents matters.
The U.S. federal tax code underwent massive changes in 2018. Because of these changes, many folks found they weren’t getting the refund amount they normally did. In some cases, people who typically received a refund actually owed the IRS.
One concern about these changes was that charitable giving would decrease. And it did, among folks who give less than $5,000 per year. They knew they weren’t going to see a tax benefit from their contributions due to the high standard deduction, so many withheld their giving.
The good news is that many people who give significant amounts each year continued giving — and even gave more than usual in order to get full tax benefits with the new standard deduction. This is what we call “bunching” — and it’s a strategy from which more taxpayers could benefit.