Planning for Year-End Giving
Tax-Advantaged Giving in 2021
Strong Market: Greater Impact
As you plan for the end of the calendar year charitable giving, we remind you of the following:
Consider an Increased Cash Contribution in 2021
The CARES Act, passed in March of 2020 and extended through 2021 expanded charitable giving incentives and allows taxpayers who take the standard deduction to claim an additional deduction up to $300.00 of charitable contributions to organizations such as St. Ignatius Loyola. For those who do itemize your deductions, the law allows you to deduct up to 100% of your adjusted gross income in 2020 for charitable giving.
Donating Appreciated Securities
Most publicly traded securities–stocks, bonds, or mutual funds– can be donated to a public charity such as St. Ignatius Loyola Church. You can claim the fair market value as an itemized deduction in your federal tax return and avoid capital gains tax. The amount deducted can be up to 30% of the donor’s adjusted gross income (AGI). Other types of securities, such as restricted or privately traded securities, may also be deductible, but additional requirements and limitations may apply.
IRA Charitable Rollover
Qualified charitable distribution (QCD) rules allow individuals aged 70.5 to transfer up to $100,000 each year from their IRA to charity. Making a QCD allows you to avoid an increase in taxable income. You pay no income taxes on your gift. Your donation does not count as income and so it may reduce your annual income level.
A DAF is like a charitable investment account, for the sole purpose of supporting a charity such as St. Ignatius Loyola. When you contribute cash, securities, or other assets to a donor-advised fund you are generally eligible to take an immediate tax deduction.
Please consult your legal or financial advisor for guidance on your specific situation.