The holiday season is a time for giving, and many people consider charitable contributions as part of their year-end plans. At the Inland Empire Community Foundation (IECF), we’re committed to helping you make the most of your generosity. Our Charitable Giving Officer for Riverside, Claudia Preza Marin, CSPG, is here to answer your top questions about year-end giving.
Q: What are the benefits of charitable giving?
A: Charitable giving offers a multitude of benefits. Not only can it reduce your taxable income when you itemize deductions, but it also allows you to give back to the community and support causes you care about. IECF ensures your contributions reach qualified 501(c)(3) organizations through designated or field-of-interest funds.
Another beautiful way to maximize your charitable contribution is by honoring a loved one who has passed. As an example, you can establish a scholarship fund in their name, making a lasting impact on students in our community. At IECF, we can help you establish a scholarship fund via a qualified charitable distribution (QCD), also known as an IRA Rollover contribution.
Q: What is a Qualified Charitable Distribution (QCD) and who can use this strategy?
A: Individuals aged 70 ½ and older can make a qualified charitable distribution directly from their IRA account to charity. The maximum annual gift is $105,000 per person. We always recommend speaking with your professional advisor to determine if this giving strategy is right for you.
This contribution to charity can satisfy your required minimum distribution (RMD), which is required of every IRA owner starting at the age of 73. This strategy can eliminate an influx of income that may create a tax burden for the IRA owner.
To learn more about QCDs, visit our website where you’ll find a wealth of information on this (and many other) giving options.
To make a QCD to IECF, contact your IRA custodian and provide them with our EIN/Federal ID number: 33-0748536. They may also need our address and phone number: 3700 Sixth Street, Suite 200, Riverside, CA 92501 | 951-241-7777.
Q: What are the different types of charitable donations that I can make?
A: There are many ways to give back to the community through a partnership with IECF!
- Field-of-Interest Funds: Support multiple nonprofits focused on an issue. You can award support through a competitive grant application process, or a designated fund restricted to a specific organization through yearly grants.
- Donor-Advised Funds (DAFs): Receive a tax deduction in the year you establish your DAF and enjoy the flexibility to recommend grants on your terms, interests, and schedule. Our expert Impact Team can help you find nonprofits in the Inland Empire that align with your giving criteria.
- Scholarship Funds: IECF simplifies the process of establishing a scholarship fund, letting you determine the scholarship amount and selection criteria. You’re always in the driver’s seat, and our experienced team will guide you through the process.
Q: Can I donate appreciated assets?
A: Donating appreciated assets like stocks or bonds is a tax-efficient way to give. By avoiding capital gains taxes, you maximize your charitable impact compared to a cash donation. While donating appreciated assets is an excellent strategy, consult your tax professional for personalized advice.
Q: What are the deadlines for year-end charitable giving to impact my 2024 taxes?
A: To receive a tax deduction for your 2024 contribution, IECF must receive it by December 31st. This applies to mailed checks, QCDs from IRAs, and wire transfers.
Q: What else do I need to know?
- For wire transfers, QCDs, or gifts of securities, please notify IECF via phone or email to ensure proper attribution. Sometimes the contributions hit our books without any additional information such as the name of the individual who made the gift, so contact me or any member of our Charitable Giving Team to let us know of an incoming gift.
- We love updating you on the impact of your donation, so be sure to let us know of your interests. Contact me or any member of our charitable giving team to get the conversation started.
Q: What are some effective ways to give to the Inland Empire community?
A: IECF has been around for over eighty years, so we have deep roots in the community. Eight decades of experience means our donors can rely on us to provide knowledge and background on the IE’s nonprofit sector and the pressing needs of the region. Check out our nine Signature Funds like the CIELO Fund supporting Latinos in the IE, the Women’s Giving Fund for a focus on issues impacting women and their children, and the IE Black Equity Fund with a mission of advancing racial equity for great examples of how we’re uplifting the underserved and creating pathways for the next generation of leaders.
Another meaningful option at IECF is the Here for Good Fund, which was established to ensure that IECF’s legacy in the IE will continue for generations to come. The fund provides general operating support for our organization, ensuring that we can be a strong pillar for community philanthropy while remaining resilient in times of crisis and change.
I really appreciate the opportunity to pool my charitable contributions with those of others who share the same interests. It’s a powerful way to make a significant impact!
Q: How can I learn more about charitable giving strategies?
A: We’re delighted to create a tailored experience that suits your needs and goals, and to partner with you and your advisors as you create your charitable giving plan. To get started:
- Let your financial advisor and accountant know that philanthropy is a priority for you.
- Download our free Charitable Giving Guide.
- Visit our website to access a goldmine of free information and resources.
- Make an appointment with me or another member of our team to discuss your philanthropic goals.
We look forward to working together to help you establish your legacy of giving in the IE! Sign up for our monthly eNewsletter to stay up to date on all the good we’re doing through the power of philanthropy!
