As 2021 comes to a close, you may be thinking about the charities that are important to you and how you want to support them this year. The staff at the Carbon County Community Foundation can help you realize your charitable giving goals this year and anytime in the future.
Here are some things to consider as you make your year-end charitable contributions:
Special Deductions for Charitable Giving: If you claim the standard deduction when you file your tax return, you can qualify for a special deduction of up to $300 for single filers and $600 for married couples filing jointly when you make charitable donations in 2021.
Bunching Donations: If you’ve had unusually high income or gains this year, you can bunch your future annual gifts into a single contribution to a Donor-Advised Fund at the Community Foundation. You’ll receive the tax benefit this year for the full amount of your contribution, and you can recommend grants from your Donor-Advised Fund over the next few years to the nonprofit organizations you typically support, maintaining the level and timing of your usual giving.
Contributions of Appreciated Stock: Giving stock is one of the easiest ways to contribute to an organization. Donors receive a charitable income tax deduction for the fair market value of the stock and avoid paying the capital gains taxes that would be incurred if the stocks were sold. Similar to bunching donations, you can gift the stock to the Community Foundation to establish a Donor-Advised Fund, and we will help distribute grants to nonprofits on your behalf.
Qualified Charitable Distributions From Your IRA: Individuals over age 70½ can satisfy the Required Minimum Distribution (RMD) requirement by donating up to $100,000 from their IRA. Donors taking the standard deduction can use the qualified charitable distribution (QCD) option. There are limitations on what type of fund can accept this type of gift, so we can help you determine the best option to fit your goals.
Planned Giving & Charitable Bequests: Now is a great time to evaluate how your charitable goals and the organizations you support may fit into your lasting legacy. Charitable gifts can be used to help manage taxes, shift assets, and transfer wealth – all while making a significant contribution to charitable organizations. The Community Foundation can be a partner in planning your philanthropic legacy.
Contact the Carbon County Community Foundation now to initiate any of the above strategies before the end of 2021.
**For additional guidance regarding the above-mentioned giving strategies, please consult your tax advisor.