As the calendar year winds down, individuals and businesses find themselves evaluating their financial situations, both for the present and the future. For those looking for strategic ways to optimize their tax liabilities, end-of-year philanthropic giving emerges as a smart financial move and a way to do good.
The professionals at Eide Bailly LLP work with a number of clients on end-of-year giving strategies. April Keizer, Senior Manager, Tax for Eide Bailly says there are several different strategies to consider when exploring end-of-year giving options. “Not only should individuals and businesses consider end-of-year giving for certain tax strategies, but also, they should consider a cause that they are passionate about. Taxpayers can donate cash or noncash items to exempt organizations and receive an income tax deduction. Taxpayers would need to have personal deductions that are in amounts over the standard deduction to be able to itemize these contributions. Work with your tax professional to see if you typically itemize or take the standard deduction and what amount of donations would be required for you to be able to itemize your deduction.”
What You Need to Know
For donations to qualify for a tax deduction, the contributions need to be made to an exempt organization. And if you want your charitable contribution to qualify in the current year, donations need to be post marked, made electronically, or dropped off at the exempt organization on or before December 31st to qualify for that tax year.
“There are other non-cash contributions options that can be deducted up to 20%-50% of someone’s AGI (adjusted gross income), depending on the asset and the type of donee,” April explains. “It is important to work with a tax professional when considering year-end giving strategies.” To learn more about year-end gifting strategies, visit eidebailly.com.
Rachael Alwin, Sioux Empire United Way’s (SEUW) Major Gifts & Planned Giving Director, shares details on the different ways you can give to SEUW to make a lasting impact on the community. “Donors can give during their lifetime, through a will, or by naming Sioux Empire United Way as the owner or beneficiary of insurance policies, IRAs, or 401Ks. Trusts and charitable gift annuities are also accepted.”
“The most popular gifts we receive include cash, appreciated and other securities.” Alwin explains. To learn more about different ways to give to SEUW, contact the office at 605-336-2095 or by email unitedway@seuw.org.
Supporting the SEUW 2024 Campaign
As 2023 concludes, the 2024 SEUW annual giving campaign nears its end, currently at 68.8% of its $9,416,532 goal. This reflects the community's unwavering commitment to supporting crucial programs in the Sioux Empire. Final pledge counts are scheduled for February 2024. SEUW and its dedicated volunteers will persist in maintaining momentum and fostering collaboration to achieve the campaign goal.
“The next two months are imperative for reaching our 2024 campaign goal," says Tim Blotske, 2024 Volunteer Campaign Chair. "Achieving this goal will enable SEUW to support vitally important local non-profit agencies and programs.” Despite a challenging economy this year, the Sioux Empire community has shown great generosity. “I urge any business or individual who is able to consider donating to SEUW. A donation to SEUW has the power to benefit 34 local non-profits serving our most vulnerable populations” explains Blotske.
Jim Jarding, Jr., Tax Partner and Sioux Falls Market Leader at Eide Bailly LLP shares why his team continues to support SEUW, “SEUW plays a vital role in our community. Part of the culture statement at Eide Bailly is to give back to the communities we work in. With the number of lives that SEUW touches and the efficiency in which the money is used, we are honored and humbled to support SEUW and the programs in which it supports.”
For more information on Sioux Empire United Way and to learn how to make your end-of-year contribution, visit seuw.org. To contact an Eide Bailly tax professional and learn more about end-of-year giving strategies, visit eidebailly.com.
To ensure that your contributions align with your specific tax and financial circumstances, consult with a tax professional or financial advisor.
About Sioux Empire United Way
Founded in 1929, Sioux Empire United Way's mission is to lead, sustain, and nurture a unified, effective response to community needs. The organization serves an estimated 1 out of every 3 individuals each year in our community through over 75 different programs. Contributions stay local, benefiting the four-county area of Lincoln, McCook, Minnehaha, and Turner. Sioux Empire United Way raises nearly $10 million each year, thanks to contributions from nearly 16,000 individuals and 600 businesses.