Tax-Smart Ways to Give to Trails
Hi there,
I’m Michelle, the newest Board Member here at SCMTS. I’m an avid trail runner, hiker, mountain biker, and birder and am thrilled to help the organization expand its mission to bring fun, accessible trails to everyone. I can’t wait to share the stunning new trails at Cotoni-Coast Dairies with my daughter when she visits over the holidays; it’s my new favorite place to trail run.
Much of SCMTS' work is powered by individual donations of all sizes and every contribution makes a difference. I want to share a few tax-smart strategies I've learned (that I wish I knew sooner!) that some donors may find helpful.
Important Note: I’m not a tax advisor; this information is for educational purposes only. Please consult with your tax professional or financial advisor to determine the best strategy for your individual situation.
Donor-Advised Funds (DAFs)
For the past few years, I’ve leveraged a DAF (donor-advised fund) to give more to SCMTS while receiving tax benefits.
DAFs offer several advantages:
— You receive an immediate tax deduction when you contribute to your DAF
— Assets can grow tax-free within the fund
— You can fund your DAF with multiple years' worth of contributions before December 31st to maximize this year's tax deduction, then recommend grants to SCMTS this year and in the years ahead
— Tip: If you contribute appreciated stocks or securities held over a year directly to your DAF (rather than selling them first), you avoid capital gains taxes while still receiving a deduction for the full fair market value
If you don't have one yet, they're easy to set up through organizations like Fidelity Charitable, Schwab Charitable, Vanguard Charitable, or your local community foundation.
Other Tax-Smart Giving Options
Appreciated Securities: Gift stocks, bonds, or mutual funds held for over a year directly to SCMTS to avoid capital gains while claiming a deduction for the full market value.
Cryptocurrency: I’ve learned that SCMTS has a Giving Block profile where we accept dozens of cryptocurrencies directly online. Just like appreciated securities, you can avoid capital gains and get a deduction for the full market value for appreciated cryptocurrency held over a year.
Qualified Charitable Distributions (QCDs) from IRAs: If you’re 70½ or older you can transfer up to $108,000 (2025 limit) per year directly from an IRA to SCMTS. QCDs are excluded from taxable income and can satisfy your required minimum distributions (RMDs), which is a great benefit for retirees. Note: QCDs must go directly to charities like SCMTS, not to DAFs.
New in 2026: If you take the standard deduction (like most taxpayers do), you'll be able to deduct up to $1,000 ($2,000 for couples) for cash donations directly to SCMTS, even without itemizing. This is a game-changer for making charitable giving tax-advantaged for everyone, not just high-income donors. Note: This benefit only applies to direct donations, not contributions to DAFs.
Now’s a great time to support trails. When you give before the end of the year, your tax-advantaged donation will qualify as part of SCMTS’ end-of-year giving campaign and be matched by generous donors who have already committed over $100,000 to our trails.
Together, we’re creating a bright future for our natural landscapes and growing communities. Thank you in advance for your support as we close out 2025 with a rallying cheer for trails!
— Michelle Tomasko
P.S. For many of these options, you’ll need SCMTS’ tax ID number: 77-0457425. SCMTS is a 501(c)(3) tax-exempt organization; you can verify our status at irs.gov/charities. If you want to chat more about my experience or SCMTS’ upcoming work, please give me a shout! You can reach me at [email protected].