Ho! Ho! Ho! Tis the season for giving and thinking to finalize tax considerations when reflecting on the past calendar year.
You may receive a return of a 50 percent direct credit to your tax bill when donating up to $200 per individual and $400 for couples filing jointly, given to an Indiana funded university. Because Purdue Extension is part of a state funded university, one can donate to the local Extension Office that would qualify. Therefore, a $100 contribution to the Purdue Extension-Putnam County program would cost one only $50. You can also specify in many cases how you would like the money to be used (i.e. 4-H, youth development, agriculture, natural resource, or health and human science educational programming or equipment, etc.). One could even specify the gift be used for a specific educational program or topic (i.e. 4-H STEAM, advanced Master Gardener workshop, nutrition education, workforce development workshop, etc.). Some limitations do exist. For example, funds donated for awards or scholarships would not be eligible for the additional direct state tax deduction. Give the Extension office a call and ask about this excellent way you can support community programs for minimal cost to your pocket due to the additional state tax credit.
Other options focus on income tax deductions rather than a direct credit. One example is that local Extension positions may be endowed with a family name or business for example. There are also family scholarships that may be set up to specifically benefit Putnam County or even multiple counties. Land or other assets may also be willed or donated to sponsor larger gifts as well. This can be done through the Purdue Foundation and also can be done over time and there is no percentage fee taken out of the gift like there are at many foundations. Another possibility for setting up an endowed instrument or contributing to an existing endowment is to utilize “required minimum distributions” (RMD) from IRA’s or other retirement funds that ultimately would otherwise be taxed. These RMD and the associated capital gains can be donated and the tax liability is removed for both the donor and the recipient who receives the full benefit.
One can also donate to the Putnam County Community Foundation (PCCF) and name the “Putnam County Fairground Endowment” as the recipient. While this option is not eligible for the 50% state tax credit that a state funded university or college provides, it is a great option in that the Putnam County Community Foundation is a 501(c)3 entity which provides opportunity for the general state and federal income tax deduction via a reduction in taxable income. And a donation to Fairgrounds endowment certainly helps Extension programs who often benefit because they use the Putnam 4-HFairgrounds facilities. If you desire to see the fairgrounds maintained for your children and grandchildren, this option will certainly benefit the facility. The goal for the Putnam County 4-HFairgrounds Endowment is one million dollars and this is a very important philanthropic effort to stay abreast in assuring a quality facility for future Putnam County Fairs. Additionally, it could be grain or livestock that is given to fund one of the Putnam County Community Foundation fund options. The Putnam County Community Foundation also manages four previously established scholarships that are set up to benefit Putnam 4-Hers where donations could be made as well.
Another endowment of the Putnam County Community Foundation is the Diana Thomas endowment that disperses funds each year that is used specifically for volunteer development for Putnam County 4-H volunteers. Specific to the Putnam County 4-H program, there is now the Putnam County 4-H Endowment via the Indiana 4-H Foundation. All of the aforementioned donation options except the direct state credit would apply to bothPCCF and Indiana 4-H Foundation endowments. The Indiana 4-H Foundation endowment will be critical to providing additional funding to the Putnam 4-H program in the future as funding has been rather flat over the past twenty or so years.
Visit our homepage at www.extension.purdue.edu/putnam or you can contact the local office by calling 765.653.8411 for more information regarding this week’s column topic or to RSVP for upcoming events. Office hours are Monday thru Friday from 8:00am-12:00pm and 1:00pm-4:00pm. Evening and lunch appointments are available, upon request. It is always best to call first to assure items are ready when you arrive and to RSVP for programs. While many publications are free, some do have a fee. All times listed are Eastern Time. Purdue University is an equal access/equal opportunity/affirmative action institution.
Upcoming events
Nov. 28, Dec. 5, 12, & 19 – Know Your Numbers, Know Your Options, 10 am – 12 pm, $20, Virtual, Register at https://cvent.me/WPkAML
Nov. 28 – Wild Eats: Cooking Venison for Flavor and Safety Webinar, 6pm, register at https://tinyurl.com/wildeats23
Dec. 22 – Extension office closes for Christmas/New Year’s Holiday
January 2 – Extension office reopens.
Farm tax information
