"Fiscal cliff" budget talks are causing donors and nonprofits concern. Will the incentive of the charitable deduction be limited to the point that people will reduce their financial support of organizations, like Association of Arizona Food Banks, that help those in need?
With uncertainty looming around the future of the charitable deduction, many donors are taking action to preserve their ability to help causes near and dear to their hearts while benefiting from the tax deduction now. One vehicle to accomplish this goal is a donor-advised fund. Contributing to a donor-advised fund before year-end will allow donors to take the deduction at the current rate allowed. The donor can then direct how the funds are to be distributed at a later date. In the meantime, money in the donor-advised fund can be invested and continue to grow tax-free.
Donor-advised funds like Fidelity, Vanguard, Schwab, etc., are easy to set up and can be used even if the charitable deduction remains unchanged. Ask your broker how easy it is to set up such a fund or visit their website.
We appreciate your support of the work of Association of Arizona Food Banks and encourage you to talk with your financial advisor to preserve your ability to help those we serve in the future.
Association of Arizona Food Banks is a 501(c)3 nonprofit organization. Tax ID 86-0507679. This information should not be construed as tax advice. Please consult your tax advisor regarding your individual situation.