Mary Ellen Markowski | December 11, 2017

The United States Tax Code encourages charitable giving by permitting individuals itemizing deductions to deduct amounts donated to charity.  Pending legislation may reduce the value of such deductions if passed.  While neither the House nor Senate tax proposals eliminate the availability of charitable deductions to those itemizing deductions, changes to the size of the standard deduction could result in a greater number of taxpayers electing to take the standard deduction.   If you are an individual who currently itemizes deductions, you may want to talk with your tax advisor to determine if you should accelerate charitable contributions into 2017 to take advantage of a larger income tax deduction this year.  The Catholic Community Foundation provides a vehicle for you to make contributions this year to create a fund from which annual grants could be made to your favorite charities in future years.  Donor advised funds can be created with as little as $25,000.  Transfers of cash or marketable securities qualify as charitable contributions in the year you make the gift to the Foundation.  The fund can then be used to fund grants to charities of your choice over time.  Because of the uncertainty surrounding this tax reform, as always, we recommend you talk with your financial and tax advisors to determine the best situation for you as several limitations can be imposed under the law.  Please contact us at the Foundation if you would like further information regarding potential establishment of a donor advised fund.