As a friend and supporter of TLC Learning Center, you know that our mission is to provide, in a fiscally responsible manner, comprehensive early childhood education and therapeutic services to assist each child in reaching his or her highest potential. In order to meet our mission, we rely on the generosity of the members of our community for support.
On December 22, 2017, the Tax Cuts and Jobs Act was signed into law and will go into effect on January 1, 2018. The bill will significantly increase the standard deduction in 2018 and future years, and because of this, fewer of our donors will receive a federal income tax deduction for charitable giving. We have summarized a few points below to help you decide if it makes sense for your family to make a donation to TLC before December 31, 2017:
• Donate before year-end to maximize your 2017 tax deduction - If you donate to TLC before the close of business on December 31, 2017, your donation will be deductible on your 2017 tax return before the new tax bill goes into effect in 2018.
• Donor Advised Funds - You are allowed to take a charitable donation deduction on your 2017 tax return by putting money or stock into a donor advised fund for future donations to TLC. Simply open an account with your wealth manager or online brokerage, fund it before December 31, 2017, and you will be able to deduct this amount on your 2017 tax return. This account can be used to make your future donations to TLC. Learn more about donor advised funds and strategies to maximize your charitable giving deductions in this article from the New York Times.
• Double your benefit by donating appreciated stock – If you transfer appreciated stock to your donor advised fund or directly to TLC, your charitable donation deduction is the fair market of the stock at the time of the donation. You are allowed a deduction for the appreciated value of marketable securities, rather than your cost basis, which could significantly increase your donation deduction and avoid paying tax on your capital gain.
• Colorado Child Care Tax Credit – A donation to TLC qualifies for the Colorado Child Care Tax Credit. The credit is equal to 50% of your donation and reduces your Colorado income tax liability dollar for dollar on annual donations of $100,000 or less. Any unused credits carry forward up to 5 years. The Colorado credit is not impacted by the new tax bill, so we expect the credit to be available in future years as well.
Please consult your tax advisor prior to making any charitable contributions. This is intended for information purposes only and should not be relied upon as tax advice.
Thank you again for everything you do to support TLC Learning Center and to give back to those in need! And thank you for taking the time to consider making a year-end donation to TLC to help support our program! Your gift is very much appreciated.
TLC Executive Director