From the desk of Maggie Murphy: Busting common myths about giving - The New York Community Trust

April 17, 2023 | By The New York Community Trust

From the desk of Maggie Murphy: Busting common myths about giving

Photo of Maggie Murphy by Ari Mintz

Maggie Murphy is The Trust’s assistant director of donor services and grants management.

My job is to make giving easy and joyful for our donors. There are common concerns that I’ve heard from donors over the years and the list below represents a few. I love to hear from you, so please feel free to reach out to me at (212) 686-0010 x353 or mmm@nyct-cfi.org.

Myth #1 – I should wait to make my yearly gifts to nonprofits at the end of the year.

Busted: While many of us wait to make year-end gifts to nonprofits, consider modifying that tradition. Not only do nonprofits need the money all year round, many organizations have fiscal years ending in June, so gifts in the spring help keep budgets balanced.

Myth #2 – I can’t support a nonprofit fundraising gala through my community foundation.

Busted: It’s true that the IRS does not permit you to pay any portion of the cost of attendance to a fundraiser, such as a gala or golf outing, from your community foundation’s donor-advised fund (or DAF). This includes the tax-deductible and non-tax-deductible portions. However, you can make a gift from your DAF to the organization in lieu of tickets. You also can make an additional DAF gift in honor of its fundraiser, as long as you’ve paid the base price of the tickets.

Myth #3 – I can’t give my Qualified Charitable Distribution (QCD) from my IRA to a community foundation.

Busted: While it’s true federal law does not allow you to donate your QCD to your donor-advised fund, you CAN donate it to a community foundation, like The New York Community Trust, if you give the foundation the freedom to address urgent needs it has identified. For example, you can donate your IRA distribution to our Community Needs Fund, or use it to create a field-of-interest or unrestricted fund in your name. Make a difference while minimizing your taxes.

Myth #4 – I need to be a multimillionaire to have a charitable legacy that makes a difference.

Busted: The magical thing about creating an endowed fund in The New York Community Trust is the impact you are able to make over time. With our stewardship and investment, your fund can grow and give away far more in the future than you ever put into it. This means that organizations will benefit through the years, no matter the size of your fund.

Myth #5 – I can only give locally from my donor-advised fund.

Busted: While our mission is to make life better in New York City, Westchester, and Long Island, our donors enjoy giving to organizations around the country from their donor-advised funds. Many use their DAF to support hometown charities, nationally focused organizations, or their alma maters.