The 2017 Tax Cuts and Jobs Act has meant a number of changes for American taxpayers, including their charitable giving, says John Feudo, vice chancellor for university advancement.
“As we approach the end of the year, alumni and other members of the UML community have contacted us with questions about the best way to plan their gifts and the kind of deductions they can claim,” Feudo says.
Together with Carolyn Flynn, general counsel and director of gift planning for the UMass Foundation, Feudo offers the following guidance:
- Because the standard deduction is higher ($24,000 for married filing jointly; $12,000 for single filers), fewer taxpayers will be itemizing this year.
- Donors may group donations in one year to achieve the greatest impact from a tax perspective. For example, paying a multiyear pledge in one year may be more beneficial to the donor.
- Donors can consider contributing appreciated assets, which retain a tax advantage (no capital gains tax), regardless of whether deductions are itemized.
- For donors of ages 70½ or older, the IRA charitable rollover enables them to have their required minimum distribution sent directly to UML as a charitable contribution, avoiding the need to report it as income.
“We are happy to talk with donors at any time to discuss these and other options, and to help them find ways to support the UML programs they care about,” says Feudo.
To reach him or another member of University Advancement, contact 978-934-4814 or firstname.lastname@example.org.