06-18-2018 · Legacy Leaders


With the passage of the Tax Cuts and Jobs Act (TCJA) effective in 2018, many financial advisors are recommending clients review their financial and philanthropic plans. Highlights are that the new standard deduction is $12,000 for single individuals and $24,000 for married couples.

Additionally, homeowners may deduct up to $10,000 per year in combined property, state income and local income taxes. As a result, many people, especially those who don’t have a mortgage, will not be itemizing this year.

We recommend that you consult your professional tax advisor for the best actions relative to your personal financial situation. The following is a list of philanthropic methods that are tax advantageous when making your annual Tocqueville gift:

  • Making a gift of appreciated stock: You can avoid capital gains tax and it is less costly to donate stock than cash.
  • IRA Rollover gift: If you are 70 and ½ years old, you can make a gift of up to $100,000 annually and won’t have to pay income tax on the amount you donate. (Also, it is tax advantageous to name United Way as a beneficiary of your IRA in your estate plans, as non-charitable beneficiaries will have to pay income tax on funds inherited through an IRA).
  • Donor Advised Funds: Give you an immediate tax deduction at the time of your donation and you can determine when to donate from your fund. You can set up at various financial institutions or a community foundation.
  • Endow your gift: Consider endowing your annual contribution and become a member of the Tocqueville Legacy Circle. Gifts of $250,000 or more to the Endowment Fund generate an annual Tocqueville Society contribution of $10,000 (based on market average returns of 4%). You receive the tax deduction for the initial donation and become a member of the Tocqueville Society in perpetuity.

For more information regarding the above mentioned gift types, please contact Eve Powell at epowell@unitedwayatlanta.org.