With the new Tax Cuts and Jobs Act of 2017 in effect as of January 1, it's more important than ever for individuals and families to develop strategic, long-term plans for their charitable giving.
If you’re a professional advisor who has been fielding questions from your clients about the new law, we encourage you to download a PDF resource developed by our charitable planning experts at NCF that explains the law's implications for 2018 and beyond.
"One effect of the new law is that charitable giving just got easier for those who will no longer itemize their deductions,” says Jeanne McMains, NCF Vice President of Gift Planning Solutions. “The increased standard deduction means givers will receive the same or greater tax benefit as they would have received for their charitable gifts in prior years but without the extra steps necessary to substantiate and claim the deduction on their federal tax return."
Gifts of appreciated publicly-traded stock become more important, as well, because they avoid the capital gain tax upon sale, thus reducing taxable income the giver would have recognized. Your clients should consider “front-loading” giving into one year, itemizing in that year, and claiming the increased standard deduction in the following years.