We have a couple of important updates that you need to be aware of:
- The Indiana Department of Revenue issued clarification on donations given to SGOs from Donor Advised Funds (DAFs). The IN DOR will give a donor a tax credit certification number for a gift given from a DAF. HOWEVER, we strongly advise against donors giving to the SGO through a DAF for a state tax credit because they could incur penalties and fines from the IRS on the federal side. We found this explanation helpful if you are interested in additional information: https://www.pgdc.com/pgdc/donor-advised-funds-new-provisions-pension-protection-act-2006
- The IRS has not yet finalized the proposed rule that would change the federal deduction to half the total donation amount. The instructions were just released to several publications indicating that the IRS is acting as if the proposed changes will be finalized. Donors who give through the SGO (on or after 8/28/2018) and itemize on their federal return should claim half of the total amount of the SGO donation as a charitable contribution.