What They Mean for Your Giving
You may have heard about certain tax laws “sunsetting” this year and wondered what was up. Here’s a brief Q&A to shed some light:
Q: What is the Tax Cuts and Jobs Act?
A: That 2017 law overhauled the tax code. It changed tax brackets and increased the standard deduction, the estate tax exemption, the child tax credit and more. It took effect Jan. 1, 2018, but many benefits are due to expire at the end of this year.
Q: Will some of its benefits be renewed?
A: Possibly. It’s up to Congress to decide what stays and what goes. If no action is taken by Dec. 31, 2025, the tax laws will revert to what they were in 2017.
Q: What does this mean for my charitable giving?
A: Three words: Stay the course. Your options for giving—both now and in the future—remain unchanged. Don’t wait for new tax laws and lose an opportunity to make a difference at a nonprofit you love and possibly enjoy tax benefits too.
Q: Which gifts should I consider?
A: You can choose from several popular options:
- A gift in a will or trust
- Beneficiary designations
- Gifts from your IRA
- Gifts of appreciated property
- Donor advised funds
Q: If I need more information, who should I talk to?
A: For guidance on how new laws could affect your finances or tax bracket, talk to your financial advisor or tax attorney.
For guidance on the best ways to leave a legacy at Innovia Foundation anytime this year, reach out to Innovia’s Gift Planning Team at 509-624-2606 or giftplanning@innovia.org. They can help explain the options available to you regardless of what happens in Washington, D.C.
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. If you do not currently have a professional advisor, please contact our office for a list of current professional advisors. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.
