Get ready for the giving season
With year-end approaching rapidly, we want to make sure that gifts into your fund and grants out of your fund happen smoothly and according to your wishes. Below are some simple guidelines to follow:
Year-end is the perfect time to grow your fund and reduce taxes this year, while allowing you to give to the nonprofits you care about in future years – and thinking beyond cash is often the most tax-favored way to give.
Contributions you make to your fund are eligible for a charitable deduction if they are received by December 31.
You can easily offset your current tax burden by making a strategic donation to your fund. Remember, donations through the Foundation earn the maximum tax deduction allowed by federal and state law, but you can also offset capital gains by giving an appreciated asset. For example, a gift of appreciated stock to your fund means that you can deduct the fully appreciated value and avoid paying capital gains taxes, regardless of the original purchase price. If you plan to make a stock gift before year-end, please use our Stock Transfer Form to initiate the transfer through your brokerage firm, and return a copy of the form to the Foundation.
If you are 70½ years old and are required to take a minimum distribution annually but do not need the extra income, this is the option for you. You can take advantage of this charitable opportunity by making a gift of your Required Minimum Distribution (up to $100,000) from your IRA directly to a charitable fund at the Foundation – excluding Donor Advised Funds – and avoid paying income tax on that gift. (It is our hope that Congress will extend the option to include Donor Advised Funds in the future!) In the meantime, you can give directly to any other fund at the Foundation, including our Community Impact Fund. To qualify for a tax-free IRA Charitable Rollover, your gift must be made before year-end and the gift must be initiated by your IRA administrator to a fund at the Foundation. Please note that your spouse can also make a gift of his or her Required Minimum Distribution (up to $100,000) as long as the IRA is a separate account.
The Foundation does accept other non-cash assets to grow your fund, including real estate, closely held stock, IRAs, partnership interests and some tangible personal property. Since these assets require prior approval from our Board of Directors, please make sure to allow ample time when considering a gift of this type.
To give to your fund online, please visit DonorCentral. You can give to your fund using DonorCentral until 11:59 p.m. on Monday, December 31.
If you are interested in delivering a gift to our office, please note that we will close at 5 p.m. on Monday, December 31. If you are interested in giving after close of business on December 31, please give online through DonorCentral to ensure your gift is received in this tax year. Alternatively, you can mail your donation to our office; it must be postmarked no later than December 31.
If you are making a donation by mail, it must be postmarked no later than December 31. Please mail your gift to our office:
Sacramento Region Community Foundation
955 University Avenue, Suite A
Sacramento, CA 95825
For questions about giving to your fund before year-end, contact Chelsea Fahr, Director of Donor Engagement, at firstname.lastname@example.org or (916) 921-7723 ext. 2021.
To make a grant before year-end, please send us your request by Friday, December 7, to ensure the funds will be received by your favorite nonprofit(s) before year-end.
For endowed fundholders with a remaining spendable balance: December 31 is the final deadline for using your current spendable balance to make grants. If you choose not to use your spendable amount to support nonprofit(s) this year, that amount will be rolled back into the principal, and you will receive notice of your new spendable amount for 2018 in the new year.
By focusing on the root causes of local challenges, seeking solutions with long-term results, and supporting the organizations that tend to the vital needs of the capital area, we help create the conditions for meaningful transformation in the Sacramento region.