Year-End Giving Information News | The Community Foundation of Greater Memphis

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Year-End Giving Information

The Community Foundation of Greater Memphis is happy to assist you with your year-end giving. Below, please find important dates and deadlines, holiday office hours, and some tax planning tips you and your professional advisors may want to explore in this unusual year.

Please note: Your Community Foundation account must be established and open prior to submitting your contributions. Allow time to open the account prior to making your grants.

TAX PLANNING TIPS

from Brook Lester, managing Principal and Chief wealth strategist at Diversified Trust

Year-end tax planning strategies are more complicated this year as a result of President Biden’s Build Back Better Act, currently working its way through Congress. Several drafts of the bill have included provisions affecting tax rates, grantor trusts, basis in property, and many other issues that are not included in the current version of the bill. It remains to be seen what strategies will be included in the final bill. Despite the uncertainty, you may want to consider the following as risk reduction strategies between now and year-end:

  • If you have been considering making gifts to remove assets from your estate, you may want to make gifts to trusts or family members before the end of the year. Prior versions of the legislation have reduced the unified credit amount from $11.7 million to approximately $6 million on January 1, 2022. Whether or not this change remains in the bill, the current exemption amount will sunset by December 31, 2025.
  • If you are considering making gifts to an existing grantor trust, you should discuss with your advisors the benefits of going ahead and making these gifts now. Some drafts of the bill include provisions to include future gifts to grantor trusts in the taxable estate of the grantor. 
  • Most life insurance trusts are grantor trusts, and you might want to consider making gifts to fund future premium payments into insurance trusts prior to enactment of the bill.

Beyond these unique considerations, don’t forget some of our regular year-end items, such as:

  • Give Appreciated Non-Cash Assets – Donation of appreciated non-cash assets (such as stocks, ETFs, and mutual funds held for greater than one year) may allow you a greater benefit by eliminating any capital gains taxes due upon the sale of the assets, in addition to providing a deduction.
  • Make a Qualified Charitable Distribution of IRA Assets – A gift of up to $100,000 can be made to charity out of your IRA and count towards your Required Minimum Distribution, without creating any taxable income to you. Under current law, donor-advised funds are not eligible recipients of these distributions, but other funds—like the FOREVER Funds and scholarship funds—are.
  • Consider “Bundling” donations – You may be able to combine a few years’ worth of charitable contributions into a single year in order to reach the higher standard deduction threshold.

DATES & DEADLINES

So that we can provide the best possible service and ensure your charitable gifts qualify for a charitable income tax deduction in the 2021 tax year, please keep these important dates in mind:

  • Gifts of appreciated securities (stocks, mutual funds, ETFs, bonds, etc.) must be received by end of day on December 31, 2021. Please be aware that depending on the brokerage, there may be a delay between initiating the transfer and the stock being received in our account and plan accordingly.

If you make a gift of appreciated securities (stocks, mutual funds, ETFs, bonds), ask your broker to be sure to include your name along with the transaction. If you have made a securities gift, please check your gift history in the DonorView portal to confirm it has been noted in your account. When incoming gifts are not marked with the donor's name, we cannot properly credit your fund.

Additionally, for these types of gifts, please always notify us by emailing any details to stockgifts@cfgm.org as soon as possible. Failure to notify us of incoming gifts will delay processing.

  • Checks sent via the U.S. Postal Service must be postmarked on or before December 31, 2021. Make checks payable to the Community Foundation of Greater Memphis. Please note the fund name in the memo line. Sending checks directly to our office may delay their processing. Instead, mail checks to our secure lockbox at:

Community Foundation of Greater Memphis
Dept. 78
P.O. Box 1000
Memphis, TN 38148-0078

  • Checks sent via carriers such as FedEx, UPS, and DHL must be physically received at 1900 Union Avenue, Memphis, TN 38104, on or before 3:00 p.m. on December 31, 2021.

  • Wire transfers of cash must be received no later than 3:00 p.m. on December 31, 2021.

  • Credit card gifts made by phone or online may be made until December 31, 2021.

Email Director of Donor Services Amy Beth Dudley or call her at (901) 722-0038 for assistance.


YEAR-END GRANT RECOMMENDATIONS

Donor-advised fund holders may wish to recommend grants as part of year-end campaigns or holiday contributions. For nonprofit recipients to receive grant checks in 2021*, recommendations should be made by noon on Wednesday, December 29. Donor-advised grant recommendations should be made online through our secure donor portal.

*The timing of donor-advised grants has no effect on your 2021 charitable income tax donations since your charitable contribution was made when you contributed it to your donor advised fund.


YEAR-END OFFICE HOURS

The Community Foundation is ready to help you complete your year-end charitable giving, with our staff available to provide answers and process transactions until the last day of the year. Access to our offices is restricted due to the coronavirus pandemic. However, staff remain available by email and phone during normal business hours to assist you.

We will be closed to observe the Christmas holiday on Friday, December 24, and Monday, December 27, but will be available via phone and email business weekdays, Tuesday, December 28, through Friday, December 31, from 9:00 a.m. to 5:00 p.m.