Originally Published in the July 2019 Edition of North DFW Real Producers Magazine
As a top producing agent, you are in a unique position to give back to the community through charitable donations. A privilege that provides financial benefits in addition to numerous personal and professional benefits.
To get a better grasp of the financial benefit associated with monetary donations to non-profit organizations, we spoke with Jennifer Grammer, CPA from Lane Gorman Trubitt, LLC.
No matter what tax bracket you fall in to, one thing is the same, the standard deduction for 2018, and years to follow, has increased significantly. What does that mean for you? That means that unless you have more than $12,200 for single filers, or $24,400 for joint filers, you will not benefit from itemizing your deductions on your personal Form 1040.[1]
In order to take a tax deduction for a charitable contribution you must itemize your deductions.[2] The amount of tax savings depends on your bracket. The end of the year is always a great time to re-evaluate your situation and see if it makes sense to make additional contributions before December 31.
If you are in the top tax bracket, coming in at 37%, every dollar you contribute to a qualifying charity saves you 37 cents in tax (assuming you have enough deductions to itemize). In this scenario, if you make $10,000 in charitable contributions, you would save $3,700 in tax.[3]
If you are looking for an organization to partner with, consider these four North Texas charities (listed alphabetically) that the Collin County Association of REALTORS® is proud to support:
1. Children's Advocacy Center of Collin County (CACCC) “envisions a community free from child abuse, because our community’s children deserve the best childhood possible.”
CACCC provides essential services for children and their non-offending family members who have been victimized by abuse or neglect. At CACCC, law enforcement, Child Protective Services, therapists, family advocates, interns, and volunteers actively seek to provide safety, healing, and justice for children victimized by abuse or neglect and is the only center in our community to provide all of these vital services under one roof, free of charge.
In 2018, CACCC served 4,087 total clients, 2,179 children, and provided 26,086 services. To learn more, give financially, or volunteer, visit www.caccollincounty.org.
2. Habitat for Humanity of Collin County (Habitat) knows that while the majority of Americans feel stable and secure in their current situation, “housing insecurity” touches nearly half of adults at some point in their lives.
With your donation, families build their own homes alongside volunteers and pay an affordable mortgage. In addition to fiscal contributions, Habitat accepts donated stock, memorial gifts, and cars to further the mission of creating a world where everyone has a decent place to live. Household items like furniture, appliances, lighting, doors/windows, plumbing supplies, and flooring are accepted as tax-deductible gifts by ReStore, an independently owned store operated by local Habitat affiliates. Donations are also used to revitalize existing homes, including handicap accessibility for veterans and the elderly.
Habitat prides itself in providing accurate receipts and note keeping for donors, lightening the burden of tax-season. For more information, visit https://habitatcollincounty.org/donate.
3. North Texas REALTORS® In Action Foundation (NTRIAF) is a result of a long-time desire of the Collin County Association of REALTORS® to create an organization to aid area residents via outreach programs, charitable contributions to individuals and organizations, volunteer work, education, and housing initiatives. The organization launched into action when tornados hit North Texas three days after receiving its official charter, and it has not stopped since.
Within the last year alone, NTRIAF assisted in making over 20,000 sandwiches for the homeless, provided financial assistance to Texas tornado and hurricane victims, held two blood drives, hosted a blanket and jacket drive for the homeless, school supply drive for Plano ISD teachers, and more. To learn more, give financially, or volunteer, visit www.helpnorthtexas.org.
4. Located in McKinney, The Samaritan Inn is a “comprehensive homeless program that helps willing people gain dignity and independence.” More than just a place to spend the night, The Samaritan Inn teaches self-sufficiency and life skills to meet the needs of individuals and families experiencing homelessness.
In 2018, The Samaritan Inn offered 456 career development services, 670 financial literacy services, 5,546 casework services, and over 2,000 counseling services, in addition to serving 142,920 meals. To learn more, give financially, or volunteer, visit http://saminn.org.
Don’t wait! Get involved today; volunteer your time and perhaps your money. You will quickly see the personal and professional benefits—
and you may just change a life.
[1] The standard deduction is indexed for inflation; this amount is specific to 2019.
[2] Deductions in additional to charitable that go to Schedule A, Itemized Deductions, include up to $10,000 in property taxes and/or sales tax, mortgage interest, medical expenses, etc.
[3] It is important to note that you can only take a charitable deduction for up to 50% of your taxable income. For example, if you had $200,000 of taxable income for the tax year, then you would only be allowed a charitable deduction for up to $100,000. Any additional contributions made during the tax year would be carried forward to be used in future years.
