Mary Ellen Markowski | December 19, 2017

As noted in a previous news feed, Congress is poised to change the manner in which individuals are taxed within the United States.  While the Tax Code will continue to encourage charitable giving by permitting individuals itemizing deductions to deduct amounts donated to charity, final tax legislation to be voted upon this week will include provisions that may reduce the value of such deductions to individual taxpayers.  While the charitable deduction will continue to be available to those itemizing deductions, changes to the size of the standard deduction and the reduction in other available deductions 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 whether 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.  As always, we recommend you talk with your financial and tax advisors to determine optimal personal planning 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.