Tax reform and you: Charitable giving

Here's the story of a giving family. They want to contribute $10,000 to their favorite charity in each of the next three years. But because the Tax Cuts and Jobs Act (Public Law No. 115-97), passed on December 22, 2017, doubles the standard deduction and does away with other deductions, they may no longer see an economic benefit from doing so.

What this hypothetical family can do instead, says Bill Sutton, Strategist, Family and Philanthropy Advisory, UBS, is bundle those donations into a single $30,000 gift in one year—allowing them to surpass the expanded standard amount and maximize tax savings through itemization.

"We have some folks that are even calling it 'Brady Bunching'," Sutton joked. "Whether it's Marcia, Greg, Jan, the whole bunch, how that disparate group came together—well, you bring them together in one year."

Sutton and Terence Condren, Senior Wealth Strategist, UBS, joined On-Air Host Anthony Pastore for a four-part interview on the impact of the new legislation on charitable giving—the first installment in our "Tax reform and you" podcast series.

Tune in for insights on how the Tax Cuts and Jobs Act could affect you, including:

Condren says taxpayers who give annually may want to consider contributing a bundled charitable sum to a donor advised fund in one year, then make grants periodically in future years according to their original giving plan.

Even with the recent changes, investors can work with their financial and tax advisers to find the best ways to give to the causes they care about, Sutton adds. "Don't let that tax tail wag the donation dog."

Is your charitable giving having the impact you want? Together we can find an answer. Connect with your UBS Financial Advisor or find one