Whether you need to give a gift for the person who has everything, make a year-end charitable contributions for tax purposes, or simply want the warm feeling of supporting the new students coming to KidWorks, there are several ways to give the gift of education to a student at KidWorks that can also provide meaningful tax savings to the donor.
The Tax Cuts and Jobs Act went into effect on January 1, 2018. Due to the higher standard deduction, the $10,000 cap on state and local tax deduction, and other changes, you may not expect to itemize your deductions for the 2018 tax year. Without itemized deductions, you may lose all tax benefits associated with charitable giving to KidWorks.
Here are some simple ways you can give The Gift of Education to A student at KidWorks
IRA Rollover Gifts:
If you are age 70 1/2 or older, you can give KidWorks up to $100,000 from your IRA account by using the Charitable Distribution Provision, even if that gift is more than your annual Required Minimum Distribution (RMD). The direct transfer will not be included in your taxable income, and, therefore, you would not have to pay tax on the direct transfer to KidWorks. Instead of giving $10,000 per year over the next five years, you would give $50,000 in one year, taking you above the new standard deduction and thus providing a tax benefit for your contribution. An added bonus is that these direct transfers to KidWorks count toward satisfying your required minimum distribution for the year. Bear in mind though that these direct transfers must come from IRAs; they cannot come from 401(k)s.
Stacking or Lumping Gifts:
Another option to make a charitable donation and still get the tax benefit is to stack or lump your charitable giving.