Grain Valley News
  • Home
  • About
    • Submit Your News
    • Contact
  • News
    • Voter Resources
    • Online Puzzles
  • Community
    • Events Calendar
    • Kindness Awards
    • Parade
  • Job Board
  • Best of Grain Valley
  • Support
    • Advertise
    • Become A Sustaining Member
  • Business Directory Submission Form
  • Home
  • About
    • Submit Your News
    • Contact
  • News
    • Voter Resources
    • Online Puzzles
  • Community
    • Events Calendar
    • Kindness Awards
    • Parade
  • Job Board
  • Best of Grain Valley
  • Support
    • Advertise
    • Become A Sustaining Member
  • Business Directory Submission Form








​news

​Tax Effective Giving Through Bunching

7/28/2022

 
Picture
by Phil Hanson, President and CEO, Truman Heartland Community Foundation
     The Tax Cuts and Jobs Act (TJCA) was signed into law in 2017 and eliminated some itemized deductions, and capped others on personal income tax returns. The standard deduction nearly doubled and with indexing has increased this year to $12,950 for a taxpayer filing single and $25,900 for married filing jointly. With this much higher standard deduction, many people are not able to itemize their deductions. For charitably minded individuals and families who don't quite make the cutoff to itemize, a bunching strategy could make charitable giving tax effective once again.
     Charitable bunching is when you group the contributions you intend to make over a period of years into one large donation to a Donor Advised Fund (DAF). In the year you make your "bunched" donation, you will be able to itemize your tax return and enjoy a larger deduction. In the years you do not bunch contributions, you will continue to make regular donations to your favorite charities through your DAF and claim the standard deduction on your taxes. This method allows you to continue to support your favorite charities while maximizing the tax benefit of your charitable contributions.
     Here's a simple example of how it all works. Let's pretend Bess and Harry Truman give around $7,000 a year to their favorite nonprofits like the Harry S. Truman Presidential Library and Museum and the Girl Scouts. With mortgage interest on their Independence home at $8,000 and Missouri state and property taxes at $10,000, they fall just below the $25,900 joint filing amount for itemizing. In this scenario, Bess and Harry can only take the standard deduction.
     However, they could see substantial tax savings if they bunched their charitable giving into one year. If they bunched three years' worth of donations, or $21,000, and deposited it into their DAF, they would receive an additional $13,900 in tax deductions that year. And instead of writing out a donation check for every gift, they can simply schedule donations to be distributed out of their fund on a schedule that works for them. The community foundation sends the donations and manages all the paperwork.
     A DAF is such a simple, flexible, and tax-efficient way to support your favorite charities. With as little as $5,000, you can start a Donor Advised Fund and start growing your giving tax-free.  Our team at Truman Heartland Community Foundation would be pleased to help you maximize the impact of your charitable giving.
Picture

Comments are closed.

    RSS Feed

    Categories

    All
    Burton Kelso
    Business
    Cathy Allie
    Celebrations & Transitions
    Census
    City Of Grain Valley
    Columnists
    Community Profile
    Covid19
    Covid-19
    Economic-development
    Education
    Elections
    Financial-health
    Fitness
    Food Inspections
    Good News
    Good-news
    Grain-valley-assistance-council
    Grain Valley Fair
    Grain Valley Historical Society
    Grain-valley-partnership
    Grain Valley Schools
    Health And Fitness
    Health-and-fitness
    Home And Garden
    Jackson County
    Kindness Awards
    Ld
    Letters
    Local News
    Looking Back
    Lorne-meinershagen
    Missouri House Of Representatives
    Missouri Senate
    Musings From The Middle
    Neighborhood View
    On-the-job
    Pets
    Police Blotter
    Quick-news
    Rdn
    Recreation
    Sally-whitaker
    Seniors
    Senior-send-off
    Sports
    State Of Missouri
    Technology
    Tracey-shaffer
    Transportation
    University Of Missouri Extension
    Waynes-world

    RSS Feed

    Archives

    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018

Grain Valley News

Grain Valley News is a free community news source published weekly online. 
(c) 2023 Grain Valley News

Contact Us

PO Box 2972
​Grain Valley MO 64029

Privacy Policy
Picture