CFoPC can guide you through the latest tax trends!
The Community Foundation of Pulaski County (CFoPC) exists to help ensure a bright future for everyone who lives in Pulaski County. In that vein, there are no greater joys for us than working with local individual residents, families, and business entities to help realize the achievement of important charitable goals.
As we do rely on charitable giving from folks like YOU—your gifts to CFoPC immediately impact our entire community, and make it possible for us to do our important work—it is always our mission to keep you informed and updated about the latest trends in philanthropy and charitable giving.
If you’ve yet to establish a fund at the community foundation but are interested in doing so, we look forward to hearing from you. We can help you explore the various options and ensure that you can support the community causes that mean the most to you.
Managing this ‘changing of the guard’
It can feel beyond daunting to wrap your head around all of the potential changes (or lack of changes) that may occur in the Federal tax laws as we emerge from election season and into a new administration. CFoPC is here as a sounding board to help evaluate the planning techniques that might be most useful as you build your charitable strategy.
An uncertain post-election environment means it is certainly time for tax planning strategies. Now is a great time to lean on the team at CFoPC as you work with your attorney, CPA, and financial advisor to determine whether and how to update your estate and tax plan. Three examples of the wide range of charitable planning topics we’d be glad to discuss with you and your advisors, are:
Charitable Lead Trusts
Bunching Donations
Using Your IRA for Charitable Giving
Charitable Lead Trusts
Our team at the Community Foundation of Pulaski Count can help you and your advisors evaluate whether a potential continuation of low interest rates might mean that a charitable lead trust would be a good fit for you. Through a charitable lead trust, you can arrange for an income stream to flow into your CFoPC fund while future asset appreciation passes to your heirs, thereby minimizing tax consequences. You can also use a charitable lead trust to take advantage of the presently high estate tax exemption,
especially in light of uncertainty as to whether it will continue past the end of 2025.
Bunching your charitable gifts
Right now, the standard deduction is still high. It’s a good reason to consider making a gift to a fund at CFoPC this calendar year that allows you to itemize your deductions. If you give appreciated stock to your donor-advised fund, for example, you can not only avoid capital gains tax, but also use a large gift this year to support your favorite charities now and for years to come.
Use your IRAs for charitable giving
Even with all the question marks, it is reasonably safe to suspect that IRAs will remain excellent tools for charitable giving. If you are over the age of 70 ½, please get in touch with CFoPC team to arrange for a tax-savvy Qualified Charitable Distribution of up to $105,000 (increasing to $108,000 in 2025) to a designated, field-of-interest, or unrestricted CFoPC fund. And, regardless of your age, it is worth considering naming your fund at CFoPC as the beneficiary of your IRA or other qualified plan because not only is estate tax avoided, but your fund won’t trigger the income tax that would apply if IRA proceeds flowed to your heirs.
The upshot here, and the net-net, is that we encourage you to reach out to learn more about tax planning strategy and the ways in which you can support your favorite causes right here in Pulaski County. We are continually thankful for your involvement and your support!