The holiday season is often referred to as the season of giving for a reason. Towards the end of a tough year for many, and with an unforeseeable end ahead, need is even more tangible in 2020 than in years past. When making your donations this holiday season, check out the below tips to help you and your family maximize the dual benefits of giving before 2021.
- Maximize your return by utilizing the CARES Act. In addition to stimulus checks and assistance offered to both for- and non-profit organizations, the CARES Act provides some extra benefits to donors this year! Taxpayers can take a deduction for up to $300 (or $600 for a married couple filing jointly) in charitable contributions directly from their adjusted gross income if they don’t itemize; and if they itemize, the benefits are even greater.
- Consider giving stock. Do you have highly appreciated stock? You may be able to donate it and receive a charitable deduction for the current value and avoid capital gains tax on the appreciation. Stocks and other appreciated assets like IRAs can take some time to transfer, so reach out to the nonprofit of your choosing today, or give to the Community Foundation by contacting Katie Wright at firstname.lastname@example.org.
- Be tax-smart with your IRA. Donors who are 70½ or older can direct all or part of the IRS’ required annual minimum distribution (up to $100,000 per individual) from a traditional IRA to a nonprofit. You’ll reduce your taxable income while simultaneously benefitting our community. Learn more >
- Don’t restrict your gifts. Too often, nonprofit organizations are unable to respond to emerging needs, because their funding is tied to specific programs and projects. During uncertain times, having flexible funds and at the ready is key to meeting the most pressing needs of the community first. Consider making a general or unrestricted donation to your favorite organizations to maximize impact.
- Start a Donor Advised Fund. Donor Advised Funds are a vehicle that encourages tax-smart giving and philanthropic planning. They give you the ability to make a single donation and then grant for years to come. Learn more >
- Make it count for 2020. Credit card donations to the Community Foundation can be made until midnight on December 31. Be sure the postage for any donations has a 2020 date.
We celebrate the impact you’re making on our community and the world through your donations! Please reach out to us if you need any assistance.