To our friends and supporters in the community,
 

Smart financial and tax planning is important in any year, and especially at the end of this year with potentially significant taxation changes on the horizon.
 

While details are changing at a fast pace in tax plan negotiations in Congress, we want to share an analysis done by our Washington, DC office as to changes and differences in the tax plans being discussed. LEARN MORE
 

What follows are some opportunities and planning you may wish to consider before the end of the year to assist with both your philanthropic impact and your tax savings.
 

Please note – before making any decisions, you should consult with your accountant or personal financial advisor.
 

Also note that the deadline for many of these opportunities is December 31!

1) Consensus is that it’s smart to maximize your deductions this year.  A great way to do so – besides making a regular charitable contribution (such as to the Federation or one of our partners) – is by opening or adding to a Donor Advised Fund (DAF).  This is particularly good if you have a lot of gains or extra income this year.
 

You can in essence “bank” future contributions, extending your impact over time while getting the full benefit of a deduction now.  The minimum to open such a Fund at the Federation is $10,000; funds will be invested in the Jewish Community Foundation. 
 

Have money that can give away but are not sure where to give it?  Park it in a DAF!  Additionally, recent IRS guidance enables grants from Donor Advised Funds to pay off pledges to charities (in addition to making new gifts), so there is even more flexibility.  This is a smart approach everyone should consider.  For more information, contact Susan Antman at 732-588-1800 or susana@jewishheartnj.org
 

2)  If you are 70 ½ or older, you have until the end of the year to make a charitable gift directly from your Individual Retirement Account (IRA) directly to the Jewish Federation, satisfying your annual required minimum distribution and enjoying tax benefits.  This is a great way to make a significant charitable gift – but note that the funds need to go directly from your IRA to the charity!  For more information and a donation form, contact Vessy Dusichka at 732-588-1800 or vessyd@jewishheartnj.org
 

3) Donate appreciated stock or other securities!  Get a deduction for fair market value and save on capital gains taxes.  For more information and a donation form, contact Vessy Dusichka at 732-588-1800 or vessyd@jewishheartnj.org
 

4) Create a Charitable Gift Annuity (CGA) and not only get a deduction for a portion of the value of your gift, you also get fixed income payments for the rest of your life.  It’s a great way to ensure income while having an impact in the community.  For more information, contact Susan Antman at 732-588-1800 or susana@jewishheartnj.org
 

5) We have several targeted giving opportunities where you can have a specific impact in our community that aligns with one or more of your passions.  Gifts can be for annual support or endowments to enable efforts such as Israel Engagement and Education, PJ Library, and Emergency Support for those most in need in our communities.  For more information, contact Keith Krivitzky at 732-588-1800 or keithk@jewishheartnj.org.   
 

6) Leave a legacy and support a Jewish future!  A bequest is one of the easiest ways to have lasting impact in the community and is something that everyone can do, whether or not you have a lot to donate today.  You can include language in your will or trust specifying a gift to be made to the Jewish Federation or to one of our community partners in the Life and Legacy program as part of your estate plan.  Contact Susan Antman at 732-588-1800 or susana@jewishheartnj.org for more details.
 

The Jewish Federation is happy to work with you to ensure the most impact in the Jewish community.  We also have an array of financial and legal advisors we work with as part of our Investors Advisory Council and we would be happy to share with you the list of our advisory partners.

Additional Readings


Bloomberg: How You Can Exploit the Tax Bill Right Now


Journal of Accountancy: What the Tax Reform Bill Means for Individuals