In order for the Midwest Rugby Development Foundation (MWRDF) and the organizations who benefit from it to survive we must raise funds, NOT for today, but to perpetuate the organization’s ideals for decades. As you may already know, we formed a special committee focused on finances. The financial committee is broken down into Fundraising, Events, and Endowment. Our goal is to eventually get the endowment to the point where it can provide ongoing investment income to support the annual budget. We conservatively project 5% income from the endowment we’ll need to raise $1M to fully endow the MWRDF.
Each month, we’ll broad stroke the entire playbook of charitable planning. Each month we’ll go into more detail on these concepts. We hope you’ll commit to opening each email with the subject “Endowment”, reading it thoroughly and considering each opportunity presented. Our committee members are available to talk with you, your CPA, your attorney and/or your financial advisor in this process. Thank you for considering supporting our mission!
So what can you do to help your favorite organization AND help yourself?
Stacking Contributions and Donor Advised Funds
In the past many people itemized and deducted their mortgage interest and charitable contributions. When the standard deduction increased to $24,000 for married filing jointly, very few now itemize their deductions.
The most simple concept is called “stacking”. Simply put, this is a strategy to maximize your giving and your tax deductions by stacking multiple years of contributions into one year, pushing your gift high enough (over $24,000) to benefit from itemizing your deductions.
Another way to do this is to invest in a Donor Advised Fund. How does this work?
- You contribute up to 60% of your adjusted gross income or you may donate appreciated assets up to 30% of adjusted gross income
- The funds get invested in the Donor Advised Fund
- The donor gets an immediate tax deduction for their contribution
- The Donor Advised Fund grants a percentage or dollar amount to the charity (MWRDF) or charities of the donor’s choice over any number of years
- The donor names a successor advisor to the Donor Advised Fund to make continued recommendations after the donor has passed
You can read more about this concept by visiting https://www.fidelitycharitable.org
Qualified Charitable Distributions (QCD)
For those age 72 or over with retirement assets the IRS mandates that you take “Required Minimum Distributions” (RMDs) from your accounts. If you do not rely upon these distributions to maintain your quality of life you might consider a QCD. A QCD sends these otherwise taxable distributions directly to a non-profit organization such as the MWRDF. By sending it directly to the foundation, the distribution is not counted as taxable income, but it does satisfy the RMD. You can get more information here: https://www.youtube.com/watch?v=-ZLJO-zgNr8
Life Insurance Planning
Life Insurance can be an effective way to trade pennies for dollars. In it’s simplest form, if a 50 year old Greyhound made a premium payment of $100/month to a life insurance plan with the MWRDF named as the beneficiary the foundation might receive as much as 250k when that member passed. Depending on how this is structured, you may even get a tax deduction for the premium.
Donations of Real Estate
Have an investment property that you are considering selling, but don’t want to pay the taxes? Maybe you just don’t want to maintain the property anymore? You can receive an immediate tax deduction for the full value and avoid the capital gains tax on any earnings you made on the property during your ownership.
Donations of Appreciated Stock
Do you own stock that you’d sell if it weren’t for the taxes? By gifting that stock to the foundation you not only avoid the capital gains tax, but you also get a tax deduction assuming the amount is over the standard deduction.
Charitable Remainder Trust (CRT)
A CRT is a legal document that allows the donor to make an irrevocable gift, but receive income from that gift during their lifetime.
Please let us know if you’d like to schedule a no fee consultation regarding your planning and how you may integrate the MWRDF.
Want to Join The Club?
Get involved with any of our teams, committees, Grayhounds, the Midwest Rugby Development Foundation, youth programs, and more by getting in touch with us. We would love to have you involved!