It’s the time of year where you may be thinking of charitable giving and tax deductions and we wanted to let you know there are several ways you can make a difference for the women and children YWCA serves that qualify for a tax deduction and/or tax credit. These include:
Cash Donations – these gifts provide immediate benefit to YWCA clients and are tax deductible. Checks can be remitted to YWCA Billings, 909 Wyoming Ave, 59101, or you can donate online at ywcabillings.org/donate.
Charitable IRA Rollover – if you are 70 ½ or older you can make tax-free IRA charitable rollover gifts of up to $100,000 per year directly from your Individual Retirement Accounts to YWCA Billings.
Montana Qualified Endowment Tax Credit – Montana taxpayers can receive a reduction on their taxes by making a gift of cash or a stock transfer to the YWCA of Billings Endowment Foundation. The maximum credit that may be claimed by a taxpayer in a year is $10,000 per individual or $20,000 per couple. The credit may not exceed the taxpayer’s income tax liability. Credit against state income tax liability in the amount of 20% of the present value of any outright gift to the Endowment is allowed for a business entity up to a maximum of $10,000 per year. This includes corporations, small business corporations, partnerships, or limited liability company taxpayers.
A grant from your Donor-advised fund – a DAF is a philanthropic giving vehicle that provides an immediate tax benefit to you and allows you to grant funds to YWCA. Please see your investment advisor for details.
Legacy Giving – You can include YWCA in your will or living trust as a simple way to make a lasting impact but not affect your finances in your lifetime. Or you can designate YWCA Billings as your Life Insurance policy beneficiary. Your heirs will benefit because policy proceeds distributed to a nonprofit are exempt from estate tax.
Please keep these three guidelines in mind as you ponder your year-end giving:
- Document your giving. Under the CARES Act, if you choose the standard deduction, you can deduct up to $300 in cash donations this year to qualifying charities. If you plan to itemize on your taxes, you need to have receipts for your charitable gifts.
- Be timely. If you want your gift to count for 2022, YWCA must receive your donation or stock transfer by December 31.
- Involve your tax professional. If you need help on how to best reach your philanthropic goals for this year, reach out to your tax advisor for advice on how get the most benefit from your charitable giving.
We are available to go over options and questions you may have. Feel free to contact us at 406-252-6303 or via email to email@example.com. Thank you for considering YWCA Billings and its Endowment Foundation as you plan!