The Montshire Museum is a 501(c)(3) nonprofit organization. The value of membership benefits is not substantial so membership fees are fully tax-deductible as provided by law. Some donor benefits, including guest admission passes, have a substantial value and reduce the tax-deductible amount of your gift. Refer to your gift acknowledgement letter or read a detailed description of membership levels, benefits, and their impact on tax deductibility.
For more information, call the Montshire’s development office at 802-649-2200, x225.
FAQs Regarding the 2018 Tax Law
How will the new tax law affect my charitable contributions?
We are happy to report that charitable gifts are still tax-deductible for donors who itemize. The new tax law has lowered the tax rates for many individuals, which may increase your discretionary funds for philanthropy. That’s the good news. However, far fewer people will qualify to itemize their deductions. The standard deduction nearly doubled to $12,000 for single filers, and $24,000 for married couples. You will be able to itemize—and therefore deduct your charitable gifts—only when your deductions exceed these levels.
Note: The 2020 CARES Act (Coronavirus Aid, Relief, and Economic Security Act) allows for a federal tax deduction of up to $300, for donations made in cash, even if you are not itemizing your deductions.
Should I bundle my gifts into certain years in order to qualify for these deductions? That would mean giving less frequently.
Nonprofit organizations like the Montshire need to meet their budgets each and every year to carry out their missions. Annual support is the lifeblood of the nonprofit community! However, we encourage you to consider all your motivations for giving—the causes you care about, the impact and needs of the organizations you support, as well as your own financial goals. When supporting the Montshire, you might factor in your annual membership privileges as well.
Some donors are encouraged to use donor-advised funds to achieve their goals. Donors can make larger and less frequent contributions into these funds, and then provide steady support to the Montshire and other nonprofits over time. The tax deduction is applicable during the year in which assets are transferred to a sponsoring organization (such as New Hampshire Charitable Foundation or Vermont Community Foundation).
What other vehicles for giving should I consider?
If you are age 70 1/2 or older, you can make a direct transfer from your IRA to the Montshire and other charitable organizations without being subject to federal income tax. These withdrawals count toward your minimum distribution requirements for the year of the gift. Contact your IRA administrator to arrange a direct transfer.
What other changes should I consider?
The new tax law enables upper-income taxpayers to contribute and deduct more to the work of charitable nonprofits. The deduction limit for those who give very large gifts has increased to 60% of adjusted gross income.
Are there changes to the estate tax?
Yes. Fewer estates are subject to federal tax under the new law. The federal exemption is now $11 million for individual estates. Married couples can combine for an exemption of $22 million. In Vermont, the exemption is $2.75 million and spouses cannot combine the exemption, so charitable giving is still an important part of tax planning for many Vermonters. There is no estate tax in New Hampshire.
Although the estate tax applies to very few people, you may wish to reduce your income tax during your lifetime. For example, the IRA rollover (described above) can be very valuable to donors who meet the age requirement and wish to avoid paying income tax on their required minimum distribution. For donors of any age, contributing appreciated assets such as stock can result in a lower tax payment.
I still have questions. What should I do?
We encourage you to speak with your financial advisors about the specifics of your situation. While we would be delighted to hear from you and to discuss your goals, the Montshire cannot provide tax, legal, or accounting advice.