As tax season wraps up, many people breathe a sigh of relief—but it’s also the perfect time to think ahead. One of the most effective ways to support the community and potentially lower your tax bill is through charitable giving. At the Shallow Ford Foundation, we connect community and philanthropy for lasting impact in Clemmons, Lewisville, Yadkin County, and beyond. Here’s how giving to a community foundation like ours can also be a smart financial move.

1. Charitable Giving Can Lower Your Taxable Income: When you give to a qualified nonprofit like the Shallow Ford Foundation, your donation may be tax-deductible. What does that mean? A tax deduction reduces the amount of income the government taxes you on—it’s that simple. While tax considerations are rarely the primary motivation for charitable giving, they can play a meaningful role in shaping when and how donors choose to give.

2. What Types of Gifts Can Be Deducted? Most people think of writing a check, but several types of charitable donations may be deductible, including:

• Gifts of stock or investments
• Gifts of land or real estate
• Charitable distributions from IRAs (for people over age 70½)
• Donor Advised Fund contributions
• Bequests or planned gifts
Different types of gifts come with different tax advantages. For example, donating appreciated stock may help you avoid capital gains taxes while still receiving a charitable deduction for the full market value.

3. Standard Deduction vs. Itemizing: What You Need to Know: To receive a charitable deduction, you must itemize your deductions rather than take the standard deduction. Here’s the good news: Many families use a strategy called “bunching”—giving two or three years’ worth of charitable donations in a single year—so itemizing saves them more on taxes. Donor Advised Funds at the Shallow Ford Foundation make this strategy simple and flexible.

4. Required Minimum Distributions (RMDs) and Giving: If you’re 70½ or older, you can give directly from your IRA to a nonprofit like ours. This is called a Qualified Charitable Distribution (QCD).
A QCD:
• Counts toward your Required Minimum Distribution (RMD)
• Is not taxed as income
• Allows you to give in a tax-efficient way, even if you don’t itemize

Many people use QCDs to support causes they care about—tax free.

5. Giving Is Good for You and Your Community: Beyond tax benefits, giving strengthens our local communities:
• More students receive scholarships
• More nonprofits get the funding they need
• More local families experience real and lasting impact

Your generosity fuels the work we do every day—and helps build a stronger future for our community.

6. Talk to Your Tax Professional: Everyone’s financial situation is different, and tax laws change. A financial advisor or tax preparer can help you understand the giving strategies that make the most sense for your goals. We’re always happy to talk with you about how your generosity can support the causes you love.

Want to Make a Lasting Difference? Learn more about giving opportunities or start a fund with the Shallow Ford Foundation. Your gift today creates impact for generations.

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