At Cordant we have the opportunity to work with many current or former Intel employees. With this opportunity comes the responsibility of ensuring that their financial plans, planning strategies, and retirement assets are up to speed with the ever-changing employee and retirement benefits programs. This year, being no different, Intel has communicated changes that impact both current employees and qualified retirees alike. Specifically, the following has been updated:
- Employee Stock Purchase Plan (2019)
- Intel’s Charitable Matching (2019)
- Roth 401(k) and after-tax savings (2020)
- Intel Minimum Pension and SERMA (2020)
This blog will only focus on the changes to Intel’s charitable matching program for employees and qualified retirees, and review how a Donor Advised Fund can be used in conjunction with Intel’s generous matching program.
Changes to Intel’s Matching Gifts Program
- Increased flexibility – removed $5k restriction to non-profits and education organizations
- Transition to quarterly matching program
- Match requests for donations must be submitted within 30 days of donation
How do these new changes impact my charitable giving?
For starters, the removal of category limits to charities and educational organizations is obviously a good thing. Those inclined to give more to a particular cause now have the flexibility to do so and now have the opportunity to direct up to $10k of Intel matching to their organization of choice. One thing to keep in mind, each non-profit needs to be approved by Intel for matching and can apply for eligibility by registering at the Benevity Causes Portal.
The switch to a quarterly matching program will have a larger impact. Previously, Intel had a matching budget for the entire year and in 2018 reached its budget in early December, catching many by surprise. Going forward, they still have an annual budget, but are now enforcing it on quarterly basis and capping all matching for the quarter once the target gets hit. Any unused budget for each quarter will get rolled over to the next. Because of the smaller quarterly budget, we’re encouraging all donors to submit the gifting as early as possible to ensure their matching gets fulfilled. If a match request is submitted after the quarterly budget has been met, it will not receive the match. The dates for the quarterly campaigns are:
- Q1: January 4th – March 31st
- Q2: April 1st – June 30th
- Q3: July 1st – September 30th
- Q4: October 1st – December 13th
Match Request Requirements
Any donations made online will be automatically matched as long as matching funds are still available. However, as stated above, those gifting directly to organizations need to submit the request within 30 days of the donation. This is especially relevant for those that utilize a Donor Advised Fund (DAF) in coordination with their tax planning strategies.
As we’ve reviewed before, a DAF can be a really useful tool for those that are a) charitably inclined, b) in high tax brackets and c) have highly appreciated stock (i.e. Intel). When making a donation to a qualified organization out of a DAF, it’s imperative that the receipt from the charity is uploaded to the Benevity portal within 30 days and preferably at the beginning of each quarter to ensure the match gets accepted. Be careful, Intel will not provide a match if the request for match is received after the end of the quarter.
In summary, Intel’s generosity isn’t changing but is now requiring a little more organization on the part of the donors to ensure their worthy recipients are receiving all the financial help possible. Don’t be caught off guard, if charitable giving and tax planning are important to you, get in touch.