To: Ipswich River Watershed Association (IRWA) Supporters
From: Tracy Sopchak, Director of Development and Engagement
THE ISSUE:
The One Big Beautiful Bill Act (OB3) will bring the most significant tax code changes since 2017. In that year, the standard charitable tax deduction was doubled, resulting in the number of people who itemized their charitable giving on their annual tax return to drop by over 60%. This resulted in a fall in charitable deductions of $60 billion in just one year. This time around, the bill introduces a minimum and a maximum percentage of adjusted gross income that can qualify for a deduction, risking the same type of drop in charitable giving that we saw in 2017.
WHAT YOU CAN DO:
1. Bunch Your Gift: by giving a large gift directly to a nonprofit that is intended to cover several years or by giving to your DAF (Donor Advised Fund) for subsequent disbursement at your discretion. Increasingly donors are setting up a DAF through fund managers (e.g. DAF Giving 360 or Fidelity Foundation or the Essex County Community Foundation).
2. Gift a Stock Gift: which allows you to avoid capital gains tax and deduct the full market value.
3. Make a Qualified Charitable Distribution (QCD) Gift from your IRA (for donors aged 70.5 and older). The value of your QCD counts towards your IRA’s annual Required Minimum Distribution (RMD).
HOW IRWA CAN HELP:
IRWA is available any time during our regular working hours of M-F, 8:00 am – 4:00 pm, to answer your questions about giving options such as those listed above. Please contact Tracy with any questions. Note: IRWA does not provide individual tax advice. Always discuss your unique tax situation with your trusted advisors.
Best Regards,
Tracy Sopchak
[email protected]
978-412-8200