Save on Taxes When You Donate

People give to charities for a variety of reasons - some completely from the heart, some to gain tax advantage, and some for both.  Whatever your motivation is, here are a few strategies available to lower your tax bill. 

1.  Qualified Charitable Distributions:  for the cool kids in the over - 70 ½ years old club, you may directly transfer funds from your IRA to a qualified charity. This amount will be excluded from your taxable  income and can be counted towards satisfying your required  minimum distribution.  QCDs are limited to the amount that would otherwise be taxed as ordinary income. Your IRA custodian has all the information you need to find out if this opportunity is best for you. 

2.  Local Community Foundations:  the Dayton Foundation, the Springfield Foundation and the Yellow Springs Community  Foundation are all great partners of TLT. Each foundation has the  ability to set up a Donor Advised Fund or Charitable Checking  Account. TLT receives many of our donations via these foundations. There is a minimum donation to open an account. The development departments of these foundations would be happy to provide you with more information. They are very helpful and knowledgeable. 

3. Name TLT in your will:  Charitable donations for estate tax purposes can be utilized to reduce or negate estate tax at death. Any money you give to a qualified 501(c)3 organization is not included in your taxable estate. TLT has been honored to receive several bequests. 

Please know TLT deeply appreciates all the donations we receive, big and small. Approximately 50% of our operating budget is derived from membership donations. The rest of our operating income comes from fundraisers, project fees, and a few grants. Our members and supporters truly make TLT’s work possible.