27 Jul 2015
What is the most effective way to give to your favorite charity? What form of gift gives me the very best tax benefits? The answer to these two questions is as close as your local Community Foundation!
The Greater Cedar Rapids Community Foundation can receive your gift into an agency fund established by your favorite charity with the Foundation. There were 13 new funds established in 2014 with 150 current agency funds. You may already be giving to one of these many fine organizations.
Here is the big news on the tax benefits: for every $1 you give to a Community Foundation in the State of Iowa, you are eligible to receive a 25% Iowa Income Tax credit! Tax credits are “golden” when it comes time to file because the credit is applied directly to your Iowa Income Tax due. If you gave $10,000, the Iowa Income Tax Credit would be $2500 PLUS your Federal Tax itemized deduction getting the “cost” to make the gift down around $4100. But, you should know there are just over $1million tax credits left for the 2015 tax year.
You should act quickly if you’d like to utilize this tax credit strategy for the 2015 tax year. Additionally, if the credits are used up when you make your gift, you go to the head of the line for the 2016 tax year and have up to five years to use the credit. For more information, we encourage you to go to www.gcrcf.org to view all the giving opportunities through our Community Foundation. Happy Giving!!
Gary D. Speicher, CLU, ChFC
President of Financial Planning Services
Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a Broker/Dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Premier Investments of Iowa are not affiliated. Cambridge and Premier Investments of Iowa, Inc. do not offer tax advice.