Time for a change?
The Greek philosopher Heraclitus wisely said, “Change is the only constant in life.” This concept applies to all facets of society, including the U.S. federal tax code, which underwent a lot of changes in 2017 with the passage of the Tax Cuts and Jobs Act.
After carefully evaluating how these changes affect our donors, United Way of Rhode Island is making it easier for you to support the community — which means it may be time to adjust your charitable giving strategy.
Donating IRA distributions = a lower tax burden.
While recent tax reform measures have not relaxed the Internal Revenue Services’ ban on placing IRA distributions into donor-advised funds, it has made our IRA direct designation option far more advantageous for many philanthropically minded Rhode Islanders.
So, how does it work? We help you donate these normally restricted funds to your favorite nonprofit, including United Way’s Community Impact Fund (CIF). Our CIF helps Rhode Islanders through times of temporary crisis, such as a need for food and shelter, and also helps families and individuals achieve long-term success.
The direct designation option is as convenient as MyFund with the added benefit of preventing your IRA distributions from being counted as income — which lowers your tax burden.
Two years ago, we simplified giving with the launch of MyFund — the innovative donor-advised fund created with you in mind. Now, we’ve made giving even easier with our multi-year MyFund.
This strategic option allows you to consolidate two to three years of giving into one gift, take the combined tax benefit in a single year, and use your gift to support any 501(c)(3) in the country — including schools, churches, and our CIF.
Helping the community.
We know that you view giving as more than just a tax write-off. Like you, we understand it’s about helping people; that’s why both options are free when you donate at least 10% of your gift to our Community Impact Fund. An added benefit is knowing that none of your donations to our CIF will be spent on advertising or fundraising.
Since each person’s financial situation is unique, we encourage you to consult a tax attorney or accountant before making any financial decisions. In the meantime, if you have any questions please email our Resource Development team, or call them at 401.444.0692.