Philanthropy in the News
#GivingTuesday continues to grow in popularity. 2019 marked the eighth annual event, raising an estimated $511 million online. This figure is up significantly from 2018's total, which was $400 million. As #GivingTuesday continues to grow and more people participate, it's becoming more likely that your clients are joining in, too, so you'll want to stay up to date. #GivingTuesday 2020 is scheduled for December 1.
#GivingTuesday is just one of many examples of ways philanthropy is going mainstream and sparking new movements that quickly rise in popularity. The community foundation plays a key role in staying on top of all of the trends in giving. Our team is happy to answer questions about ways your clients can give to their favorite causes, whether online, through a donor-advised fund, or through more complex charitable planning vehicles such as gift annuities, bequests, and charitable remainder trusts.
Creative Solutions
As your clients gear up for another year of giving, how can you help them make the most of their good intentions? Consider helping clients plan their charitable giving budgets around three points—amount, timing, and category.
1. How much? That’s the $64 question. Likely more, depending on the client's budget. Something for clients to keep in mind when setting a budget for supporting favorite causes is that giving money isn’t the only way to do good. Clients should also celebrate other social impact activities such as volunteering, serving on a board, donating gently-used clothing, purchasing products that support a cause, or marketing favorite charities through social media. It all counts. Clients can set annual charitable giving budgets based on what makes sense for their families. Keep in mind that a donor-advised fund at the community foundation is a great way to organize financial contributions to favorite charities.
2. How often? Charities are looking for support year round. More than 50 percent of charitable contributions are made during the holiday season, but it doesn’t have to be that way. Consider suggesting that clients spread giving throughout the year. Their tax deductions are unaffected, and they'll be giving the organizations they support a much-appreciated boost to cash flow.
3. Who gets it? Most people support a wide variety of charities. To help your clients see where their dollars are going, suggest that they sort the recipient organizations into major categories of social impact. For example: Community Development, Arts & Culture, Children & Families, Health & Life Science, Education. Keep in mind that religious giving frequently falls into one of these five categories, depending on the gift’s purpose.
As always, the team at the community foundation is here to help you as you work with your philanthropic clients. We look forward to collaborating in 2020!
Tax Savvy
As you counsel your nonprofit organization clients and individual clients who are board members of charities, it is important to stay on top of changes in the tax laws that pertain to exempt organizations. Most recently, on December 20, 2019, President Trump signed the Further Consolidated Appropriations Act 2020, H.R. 1865, which passed the House of Representatives by a vote of 297–120 and the Senate by a vote of 71–23. The law repeals Internal Revenue Code Section 512(a)(7). This provision was part of the Tax Cuts and Jobs Act. It required tax-exempt employers to pay unrelated business income tax (UBIT) on transportation fringe benefits, such as parking. The tax applied to the amount by which Section 274 did not allow a deduction. So, tax-exempt employers no longer need to pay UBIT tax on these fringe benefits.
Please contact the team at the community foundation anytime you have a question about laws that impact the charitable sector. It's our job to help you stay current on tax laws and regulations that impact your clients.