We work with professional advisors, providing strategic counsel and helping integrate philanthropy into an estate plan, as you identify the best solutions for a client. At The Trust, we want to help you help your clients, whether for a gift today or a bequest for tomorrow.
As you work with our Donor Services staff, we can help your clients match their values to our proven philanthropic strategies.
The CARES Act signed into law on March 27, 2020, makes it possible for individual charitable donors to deduct up to 100% of their 2020 adjusted gross income (AGI), over and above the usual cap, which is at most 60%. Corporations get a similar enhanced benefit for their qualifying charitable gifts made during 2020with the deduction cap raised from the traditional 10% of taxable income to 25%.
But there are some important limitations on this expanded deductibility. It is available only to itemizing taxpayers and only for gifts of cash made during 2020. And the benefit of expanded deductibility is not available for gifts to private foundations (other than operating foundations and pass-through foundations), donor-advised funds (DAFs), or supporting organizations. Furthermore, every taxpayer’s situation is unique and should be carefully reviewed with the taxpayer’s professional advisors, in order to consider the impact of enhanced charitable giving, including the interplay with the taxpayer’s existing carry-forwards and other deductions and the impact, if any, of the alternative minimum tax.
Non-itemizing taxpayers also benefit under the law, because they are allowed a $300 “above-the-line” deduction for their cash gifts to qualifying charities.
A donor’s cash gift to the New York Community Trust will qualify for the new deductibility benefit, provided the gift is a general unrestricted gift or is for a fund other than a donor-advised fund, such as The New York Community Trust Emergency Response Fund, the Annual Fund, the Long Island Community Foundation COVID 19 Response Fund or the Westchester Community Foundation COVID 19 Response Fund.
Any unused deductions may be carried forward for up to five additional tax years, and a donor might revisit projections made today in November or December, to see if her income has exceeded expectations and provides room to make additional deductible contributions before the end of the 2020.
As a side note: The new law contains at least a marginal potential benefit for private foundations and other grantmaking organizations structured as not-for-profit corporations: They may offset up to 25% of their unrelated business taxable income through their 2020 cash grants, rather than the usual 10%.
For additional information on supporting The New York Community Trust, please contact Jane L. Wilton, General Counsel at firstname.lastname@example.org.
We offer flexible, effective, and rewarding ways to accomplish your client's philanthropic goals, as we have since 1924.
Through the generosity of New Yorkers who have set up charitable funds, we are able to make grants for a range of charitable activities important to the well-being and vitality of our region and its residents. We are the community foundation for New York, Westchester, and Long Island.
Are your clients doing estate planning? Selling a business? Exercising stock options? Managing an inheritance? We can help you as you help them achieve their charitable and financial goals.
Click below for our governing documents:
What is known to the public as “The New York Community Trust,” is in fact two organizations. The first, The New York Community Trust, is organized as an unincorporated association of charitable trusts. Each component trust is held by one of our approved bank trustees, and every gift instrument incorporates by reference the Resolution and Declaration of Trust creating “The New York Community Trust,” known as the R&D. (Please note: A co-trustee is not permitted under the R&D.)
The second entity, Community Funds, Inc., is a New York not-for-profit corporation. No bank trustee is required. Instead, component funds are invested by money managers retained and overseen by our distinguished Investment Committee.
The two organizations file a combined Form 990 with the Internal Revenue Service, share a board and staff, and together operate as the community foundation serving metropolitan New York. The determining factor in setting up a fund with either organization is the inclination of the donor. The service we provide is the same.
Donors are ensured the maximum tax benefit allowed by law whichever organization they choose. This also applies to our divisions, the Long Island Community Foundation and the Westchester Community Foundation.
We offer flexible, effective, and rewarding ways to accomplish your client’s philanthropic goals. Click the button to see our four most popular types of funds:
We’ve included sample forms for our most popular funds.
Looking for pointers on timing of charitable contributions? Want to know what happens when a charity goes broke, or how to use mutual funds to make a contribution?
From Charitable Lead Trusts to Charitable Remainder Trusts, from IRAs to 401(k)s, we can guide you on the best charitable giving for your clients.