The New Tax Law and Charitable Giving

As the dust settles on the passage of the new tax law, you may be wondering how it will affect your charitable giving. Supporters of The ALS Association give for a variety of reasons, but the added benefit for many donors is the ability to take charitable deductions if they itemize deductions on their tax returns.

The new tax law will affect everyone differently, and many people are still working through what it may mean for their personal situation.

Certain points are clear, however:

• Charitable contributions remain deductible under the new law.
• The itemized deduction limit cap for charitable contributions increases from 50 percent to 60 percent of adjusted gross income (AGI), making it easier for those who make substantial gifts to charity to make even larger donations and claim the full deduction.
• For 2018, the standard deduction amounts will increase to $12,000 for individuals, $18,000 for heads of households, and $24,000 for married couples filing jointly. In some cases, a higher standard deduction may result in less people itemizing deductions on their tax return. (Per taxfoundation.org, only about 30 percent of filers itemize deductions on their tax return).
• Regardless of the changes noted in the new tax law, giving to The ALS Association is as important as ever. We need your support to continue fighting ALS on all fronts funding research toward treatments and a cure, as well as supporting and advocating for people living with the disease.

In addition to regular donations, here are other ways you can support The ALS Association and receive a tax benefit:

• Instead of gifting cash, donate appreciated assets such as stocks or mutual funds, to The ALS Association, and avoid the capital gains taxes you might incur if they were sold. (To learn more, click here.)
• If you’re 70 1/2 and older, you can direct up to $100,000 from an IRA to satisfy the Required Minimum Distribution (RMD). IRA Charitable Transfers do not receive a charitable deduction but are excluded gross income for federal income tax purposes on your IRS Form 1040. (To learn more, click here.)
• Establish a gift that pays you income and provides an immediate deduction. If you couple this gift with other charitable gifts and qualifying deductions, you’ll reach the $12,000 or $24,000 standard deduction. There are many ways you can do this, but the most popular is with a charitable gift annuity. Here’s how it works:
  • You transfer cash or securities to The ALS Association. (Our minimum gift requirement is $10,000.)
  • The ALS Association pays you, you and a spouse, or any two beneficiaries you name a fixed payment for life.
  • Beneficiaries are asked to be at least 60 years of age at the time of the gift.
  • The remaining balance passes to The ALS Association when the contract ends.

If you’d like to learn more about how you can make an impact in the fight against ALS, please contact your local ALS Association chapter.

NOTE: This information is not meant to serve as legal or tax advice. Please consult your professional advisor for your own situation.