Practical Philanthropy

 

Information and Resources for Donors and Professional Advisors

Year-End Charitable Giving Reminders

As you work with your advisors on year-end planning, consider some of these giving strategies that will allow you to support the Community Foundation and charitable causes important to you while accomplishing tax savings.

Claim an Above-the Line Deduction in 2021

  • For single filers and married taxpayers filing separately, you can deduct up to $300 (or up to $600 for married taxpayers filing jointly) for cash contributions made to qualifying charities during 2021. Donor advised funds and supporting organizations do not qualify.

Bundle Your Gifts

  • If you plan to donate more than $600 to charity in 2021 and customarily take the standard deduction, consider a bundling strategy – making large gifts less frequently than regular annual gifts – and claim an itemized deduction in 2021. Bundling works well with a donor advised fund. You can bundle multiple years of gifts into a fund this year, take the itemized deduction, and make annual gifts to your favorite charities in the future from the fund.
  • Donating property that has appreciated can be a win-win for you: Not only will you be entitled to a charitable deduction at the fair market value at the date of the gift, you will avoid paying capital gains tax on the appreciation.

Consider a Qualified Charitable Distribution (QCD) with Retirement Assets

  • IRA owners who are aged 70½ or older can transfer up to $100,000 per year directly from their IRA to an eligible charity or charities, tax-free. For married couples, each spouse can make QCDs up to the $100,000 limit for a potential total gift to charity of $200,000, tax-free. If you are over 72, the QCD counts toward your required minimum distribution for the year.

Cash Gifts in 2021

  • For 2021 only, gifts of cash to qualified charities are deductible up to 100% of adjusted gross income (AGI). If you have significant assets, cash on hand, and low AGI, this may be a way to significantly reduce federal tax owed for 2021. The deduction available for a gift of cash to a donor advised fund remains at 60% of AGI.

 
For more information on ways donors can maximize their philanthropy with the Community Foundation, we encourage you to contact our Philanthropic Services department at 313.961.6675 or by using the form below:

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