The New Tax Law and Charitable Giving

In this month’s Waccamaw Wisdom, Karen Minogue provides advice about how to give under new tax reform, and how this law will affect charitable giving in years to come. Suggestions for future topics are always welcome at communications@mywcf.org.

Giving Under the New Tax Reform

Tax Cuts and Jobs Act of 2017

When the Tax Cuts and Jobs Act (TCJA) became law in the final weeks of 2017, many Americans were scrambling for advice on how the new legislation will affect what we pay—and what we can deduct—on our federal income taxes going forward.

Fortunately, in the past month or so, a clearer picture has emerged, and it is one that may be cause for concern for nonprofits around the country. But there are some silver linings.

The major change in the new tax law increases the standard deduction from $6,350 to $12,000 for individual tax payers, and from $12,700 to $24,000 for joint filers. Additionally, the deduction for state and local income, sales, and property taxes is now capped at $10,000.

These changes impact many tax payers who will no longer be able to itemize their deductions, favoring the standard deduction instead. With less incentive to itemize comes the likelihood that charities may experience a drop-off in the number of charitable donations.

But we in the nonprofit sector know that donors are motivated to give for reasons far more compelling than a tax deduction, and trust they will continue giving to the causes and charities they care about regardless of this new law.

With those things in mind, below, you’ll find advice that may help you continue to give generously and maximize what you can give under the TCJA.

The Good News

First, the new tax law eliminates the Pease limitation which previously curbed charitable deductions by tax filers with adjusted gross incomes (AGI) over a certain threshold ($313,800 for joint filers in 2017).

Second, the new tax law enhances the deduction for charitable contributions (of cash, not stock) by raising the limit that can be contributed in any one year. The limit is now 60% of your adjusted gross income (AGI), up from 50%.

However, the limit on contributions of appreciated stocks or property remains at 30% of AGI—which brings us to the following strategies for your consideration in 2018 and beyond:

Donate appreciated stock. The capital gains tax remains unchanged so gifts of appreciated stock are an advantageous way to make a charitable donation. This is a great gift because you can typically give more to the charity than if you sell the stock on your own, pay income tax on the gain, and then donate the cash. You can establish or add to a Donor Advised, Scholarship, Designated, Field of Interest Fund, Unrestricted, or Organization Endowment Fund administered by Waccamaw Community Foundation. This is a great strategy whether you’re itemizing or taking the standard deduction, since it will reduce your overall taxable income.

Consider starting a Donor Advised Fund in 2018 or adding to an existing Donor Advised Fund. You have a wonderful opportunity to establish an endowed Donor Advised Fund with a minimum gift of $10,000. If you already have established a Donor Advised Fund, you may want to consider making a larger than normal contribution to your Fund in one year that exceeds the standard-deduction limits in 2018 ($12,000 for individuals and $24, 000 for couples, under the new law). The tax deduction applies in the year you make your donation to your Fund.

Consider bunching or bundling your charitable giving through a Donor Advised Fund. Making a large contribution to a Donor Advised Fund can allow you to exceed the standard deduction in one year, then spread out distributions from your Donor Advised Fund to charities over the coming years. This is especially helpful if your income may also be bunched, e.g. if you earn more than what’s typical or more than anticipated next year; you will maximize your itemized tax deductions and still be able to support your favorite causes as you would have under the previous tax law.

Please note: For individuals with a Donor Advised Fund who are 70 1/2 years of age or older and must take a required minimum distribution, you may take the distribution (or a portion of it) and make a donation to a Donor Advised Fund. Naturally, if doing so, you will pay the usual tax on the distribution and write a personal check to WCF/Name of your Donor Advised Fund. This still gives you the opportunity to claim the donation as an IRS-qualified charitable contribution on your income taxes because you will have already paid the ordinary income tax on the distribution. In addition, most of these tax law changes are only in effect through 2025.

We hope this advice will help you continue to help you give generously and maximize what you can give under under the Tax Cuts and Jobs Act of 2017.

This blog does not provide legal advice. Consult your tax advisor for more info about how this law affects your particular circumstances.

Give us a call if you would like to learn more about the many different ways you can create a custom gift and leave a legacy. We make it easy to achieve your life planning and charitable goals. Reach Karen Minogue at 843-357-4483 or email her at karenm@mywcf.org.

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WCF Disaster Relief Fund

Through the Disaster Relief Fund, Waccamaw Community Foundation serves as the primary point of financial donations for all disaster relief and recovery efforts in Horry, Georgetown and Williamsburg counties.

Tim Whitten

Tim@mywcf.org

843-357-4483

A native of Alabama, Tim received his bachelor’s degree in business administration from Auburn University and a master’s degree in religion from Lenoir-Rhyne University. He brings to WCF a background in grant writing and in disaster recovery most recently serving the South Carolina Conference of The United Methodist Church.

Tim resides in Galivants Ferry with his wife Julie and their four children.

Phillip Anderson

Director

Phillip Anderson is a Senior Vice President & Senior Lending Officer for Asheville, North Carolina-based HomeTrust Bank, serving the coast of South Carolina. Throughout his 22-year banking career, he has served in commercial banking, trust administration, retail banking, and market leadership roles with mid-size and regional banks in South Carolina and Georgia. He has always embodied the community banking model of building strong local relationships and being active in numerous non-profits and promoting their causes.
 
He is a graduate of Mercer University in Macon, GA, the Cannon Financial Institute’s Trust School, The Stonier Graduate School of Banking and Wharton Leadership program. He is also a graduate of several Chamber of Commerce Leadership programs over his career.
 
Phillip resides in Pawleys Island, South Carolina, with his wife Mary Beth and daughter Carolina. In his free time, he enjoys spending time with his family, reading, and playing golf.

Ellen Barney Sycks

Stewardship & Communications Officer

ellen@mywcf.org
614-893-7998

Ellen serves the Foundation as its Stewardship and Communications Officer, responsible for communicating with fund holders on a regular basis and providing advice when needed, particularly around fund development as well as relevant field of interest information.

A native of Hillsboro, Ohio, Ellen provides more than three decades of non-profit leadership experience, focusing on creating major gift and planned giving opportunities to support organizations’ programs, special projects and capital campaigns. Ellen received her B.A. in National Security Policy from The Ohio State University. She lives in Murrells Inlet with her husband Jay and their two cats, Mabel and Murray.

Chris Hanna

Director

Chris Hanna is a Senior Broker Associate with Coldwell Banker Sea Coast Advantage. Born and raised in Myrtle Beach, he started in the real estate business in 1993. Chris is a member of the Coastal Carolinas, South Carolina and National Associations of REALTORS and is an active local community member as well, having served on various boards such as the Horry County Zoning Board of Appeals, the Coastal Carolina Athletic Foundation, and Horry County school district Carolina Forest Advisory Board. He is a member of the Myrtle Beach Area Chamber of Commerce, Myrtle Beach Area Hospitality and Oceanview Baptist Church. Chris is a graduate of Socastee High School in Myrtle Beach, and he received his Bachelor of Arts from the University of South Carolina at Coastal Carolina in 1992.

Rick Elliott

Director

Rick Elliott is president of his family business, Elliott Realty, one of the most prominent real estate companies in North Myrtle Beach. As a native of Horry County, he has always made giving back to the community a part of his approach to business. Each guest who stays with Elliott Realty is given the option to add an additional $1 per night to their bill to be donated to the Elliott Realty Charitable Community Fund at Waccamaw Community Foundation, which invests in causes throughout the surrounding community. Rick brings this commitment to community philanthropy to his service on the Waccamaw Community Foundation Board of Directors. He has also served as the chairman of the North Myrtle Beach Chamber of Commerce.



Tyler Easterling

Director

Tyler Easterling is a native of Marietta, Georgia and has resided in Georgetown County since moving to the area in 2002. Tyler is the president and COO of The Brandon Agency, an integrated marketing agency headquartered in Myrtle Beach. She is the current board chair for Coastal Montessori Charter School and serves on the boards of Helping Hands of Georgetown and Young Presidents’ Organization Southern 7 Chapter. She is a member of the 2018 Liberty Fellowship class.

Tyler holds an undergraduate degree in Journalism from the University of Mississippi and a Masters of Mass Communication from the University of South Carolina. She is an active member of Duncan Memorial United Methodist Church and enjoys spending time with her husband, Marshall, and two daughters, Julia and Anne Marshall.



Terri DeCenzo

Director

Terri serves as executive director of Women in Philanthropy and Leadership for Coastal Carolina University (WIPL). She is married to Coastal Carolina University President David A. DeCenzo, and when he joined the university in 2002, she became passionately involved with the life of the university, taking an active role in issues relating to student government and NCAA athletics, among others. Previously Terri has served on the boards of the American Red Cross and the Foundation for Georgetown Hospital System and was an adviser to the Safe Families Initiative that established Family Justice Center of Horry and Georgetown Counties. In 2016, Terri was awarded the Order of the Silver Crescent by South Carolina Governor Nikki Haley. A graduate of St. Joseph Hospital School of Nursing and Towson University, she spent most of her career practicing in critical care. The DeCenzo’s have four children: Mark (his wife Jen), Meredith (and her husband Ryan Daley), Gabriella and Natalie; and one beautiful grandson, William Mason Evans.


Executive Director, Women in Philanthropy and Leadership for Coastal Carolina University (WIPL)

Dr. Tracy Bailey

Director

Dr. Tracy Bailey earned a Ph.D. in Education with a specialization in Language and Literacy at the University of South Carolina in May of 2013. She is a Teaching Associate with Coastal Carolina University teaching Intermediate Literacy Development and Instructional Practices for Early Literacy.

Dr. Bailey began her career in education as a high school English instructor and has worked in both rural and urban educational settings. After realizing the impact professional development and community literacy had on her personal and professional growth, she wanted others to experience this. She is the founder and executive director of Freedom Readers, Inc., a nonprofit company dedicated to promoting literacy. Tracy seeks to instill in teachers, students, and the community at large the belief that every student can learn and every learner has the responsibility to pass on new knowledge to another.

Dr. Bailey earned her BA from The College of Charleston- majoring in English Education- and a Masters in Secondary Education from Coastal Carolina University. She is married to award-winning writer, Issac J. Bailey, and is the mother of two wonderful children, Kyle and Lyric.



Brent Groome

Chair

A 1987 graduate of UNC Chapel Hill, Brent came to the Grand Strand area in 1989. After a 31 year career with HTC (Horry Telephone Cooperative), he retired in 2021.  In addition to his current role with WCF, he also serves as a member of the Board of Commissioners for HGTC. He is also active with his church; serving as a Sunday School teacher and congregational song leader.  He and his wife, Dana, live in the Conway area.

Shawna Mosley-Foster

Service and Operations Officer

shawna@mywcf.org
843-357-4483 x200

Shawna, a native of Jamaica, NY, has more than 15 years of experience working in the hospitality and tourism field. Since relocating to South Carolina in 2004, she spent a few more years working with a local hospitality company before joining WCF’s staff.  While a native New Yorker, Shawna has a rich heritage right here in the Waccamaw area. Her mother was born and raised on Sandy Island, and her father is from Bucksport. She enjoys cooking, stargazing with her family, cruising and once retired….RVing! Shawna and her husband are empty nesters and resides in Myrtle Beach. 

Mike Mancuso

Executive Director

mike@mywcf.org
843-357-4483


Mike is a veteran business leader with more than 30 years of experience as an innovative problem solver and change agent for nonprofit, banking and small business organizations. Mike is a skilled economic developer with background in community development, downtown redevelopment, industrial development and strategic planning. His passion is helping Communities and Businesses thrive and grow. Most recently Mike served as the President and CEO of the Triangle East Chamber of Commerce & Economic Development Foundation in Johnston County, NC and as Executive Director for the Sustainable Opportunity Development Center, Inc in Salem, OH. Mike and his wife Christine make their home in Little River, SC. They have 3 children and 5 grandchildren living in Charleston, SC, Atlanta, GA, & Austin TX. Mike enjoys boating on the ICW, tinkering in his workshop/garage and spending time with family and friends.