By Mark Vergenes

With the holiday season upon us and the end of the year approaching, we pause to give thanks for our blessings and to the people in our lives. It is also a time when charitable giving often comes to mind. The tax benefits associated with charitable giving could potentially enhance your ability to give and should be considered as part of your year-end tax planning.

A word of caution

Be sure to deal with recognized charities and be wary of charities with similar sounding names. It is common for scam artists to impersonate charities using bogus websites and through contact involving e-mails, telephone, social media and in-person solicitations. Research the charity on the IRS website, www.irs.gov, using the Exempt Organizations Select Check search tool. Do not give or send cash; contribute by check or credit card.

Tax deduction for charitable gifts

If you itemize deductions on your income tax return, you can generally deduct your gifts to qualified charities. However, the amount of your deduction may be limited to certain percentages of your adjusted gross income (AGI). For example, your deduction for gifts of cash to public charities is generally limited to 50% of your AGI for the year, and other gifts to charity may be limited to 30% or 20% of your AGI. Charitable deductions that exceed the AGI limits may generally be carried over and deducted over the next five years subject to the income percentage limits in those years. Your overall itemized deductions may also be limited based on the amount of your AGI. Please make sure to retain proper substantiation of your deduction for a charitable contribution.

Year-end tax planning

When considering making charitable gifts at the end of a year, it is generally useful to include them as part of your year-end tax planning. In general, you have a certain amount of control over the timing of income and expenses. You generally want to time your recognition of income so that it will be taxed at the lowest rate possible, and time your deductible expenses so they can be claimed in years when you are in a higher tax bracket.

For example, if you expect that you will be in a higher tax bracket next year, it may make sense to wait to make the charitable contribution in January so that you can take the deduction next year when the deduction results in a greater tax benefit. You may want to push the charitable contribution, along with other deductions, into a year when your itemized deductions would be greater than the standard deduction amount. If the income percentage limits are a concern in one year, you might consider ways to move income into that year or move deductions out of that year so that a larger charitable deduction is available for that year. A tax professional can help you evaluate your individual tax situation.

Mark A. Vergenes is president of MIRUS Financial Partners, based in Lancaster, Pennsylvania. Mark is also a member of the HACC Foundation Planned Giving Committee.

The coronavirus pandemic has impacted thousands of members in the HACC community. Many have experienced and are still navigating its devastating effects, including loss of employment. HACC wants to help former students who desire to retrain and re-enter the workforce.

The HACC Foundation will generously award $1,500 tuition giveaways to a select number of former HACC students who are currently unemployed. The funds can be used toward tuition and fees for the spring, summer or fall 2021 semesters.

If you fit the aforementioned criteria, please complete this form by Nov. 13, 2020, to be entered for a chance to earn FREE money for your education.

To register for classes, please visit hacc.edu/RegisterOnline

ACNB Bank, a generous supporter of HACC students, answered questions about their organization and their reason for supporting HACC.

Who founded your organization, and how long has it existed?

ACNB Bank traces its roots to 1857, more than 160 years ago, when a determined group of about 20 farmers, merchants, businessmen and professionals joined together to form The Farmers' and Mechanics ' Savings Institution of Adams County in Gettysburg, Pennsylvania.

How many employees are in your organization?

We currently have approximately 400 employees working in the counties of Adams, Cumberland, Franklin and York in southcentral Pennsylvania and in the counties of Carroll and Frederick in northern Maryland.

What is the main purpose or services you provide in your organization?

ACNB Bank is a wholly-owned subsidiary of ACNB Corporation, a $2.4-billion independent financial holding company headquartered in Gettysburg. Originally founded in 1857, ACNB Bank serves its marketplace with banking and wealth management services, including trust and retail brokerage, via a network of 21 community banking offices. Offices are located in the four southcentral Pennsylvania counties of Adams, Cumberland, Franklin and York, and loan offices are located in Lancaster and York, Pennsylvania, and Hunt Valley, Maryland. As divisions of ACNB Bank operating in Maryland, FCB Bank and NWSB Bank serve the local marketplace with a network of five and seven community banking offices located in Frederick County and Carroll County, Maryland, respectively. Affiliated with ACNB Bank is Russell Insurance Group, Inc. of Westminster, Maryland, a full-service insurance agency with licenses in 44 states and the other wholly-owned subsidiary of ACNB Corporation.

Why does your organization support HACC and contribute to the HACC Foundation?

ACNB Bank has partnered with HACC for many years – since the inception of the Gettysburg Campus – because we consider the College to be an integral facet in our shared community. ACNB Bank was a significant financial supporter of the nursing program when it was originated on the Gettysburg Campus. The Bank’s North Gettysburg Office resides in the same complex on Old Harrisburg Road as HACC’s Gettysburg Campus, and our staff members have delivered financial literacy presentations to students and helped in other ways as a good “neighbor.” We created the ACNB Bank Scholarship through the HACC Foundation to provide students with financial assistance when they might not otherwise be able to afford a college education. Many award recipients come from our market area, and the hope is they will seek employment locally and give back to the community in some way in the future.

What are you looking for when you partner with an organization like HACC?

As a community bank, ACNB Bank is committed to the market areas served and views partnering with key nonprofit organizations, educational programs and economic development organizations as critical to the long-term economic health and vitality of the area. We seek partnerships where our collective efforts achieve the greatest impact and enhance the lives of those living and working in the community. Our dedicated focus on this commitment to community enables the Bank to serve others, while simultaneously building customer relationships.

In your opinion, what is HACC's impact on the community?

The HACC Gettysburg Campus has made a significant impact on the local community and enhanced the lives of many families in Adams County and surrounding environs since its founding. HACC provides students with the flexibility and opportunity to transfer credits towards bachelor's degree programs at four-year colleges or universities, take classes while attending high school, complete associate degree programs online or in the classroom, and continue education in technical or other specific programs in support of local employers.

A recent article was published detailing the incredibly unbalanced revenue gap between two-year and four-year institutions. As two-year institutions, like HACC, continue to make large impacts in communities nationwide and in some cases globally, the time for change is now. The gap must decrease to level the playing field for students who attend two-year institutions.

For more information, please read the article here.

HACC proudly launched our reorganization effective July 1, 2020. As a result, some of your HACC contacts may have changed.

Please use the information here when contacting us. We want to ensure we are providing stellar customer service and exceeding your expectations.

Thank you!