Ideas for Giving and Moving Forward in 2021
CALM continues to move forward with its important work. In the midst of all that is going on, many of our friends and supporters are looking forward to the future when they can enjoy community with friends and resume their regular activities. In response to the current situation, Congress extended some of the COVID relief tax changes to 2021.
CALM has created this page to offer resources to help you with your tax planning and to offer some ideas for you to consider if you are thinking about making a gift in support of our mission in 2021.
1. 2021 Giving Incentives
The CARES Act passed in 2020 included several charitable tax provisions to encourage giving. Congress has extended these provisions for 2021 including:
- A deduction for charitable donors who do not itemize when filing their tax returns. If you do not itemize but make a cash gift to charity, you will be allowed to take a special tax deduction, up to $300 ($600 for joint filers), to reduce your tax liability.
- An increase in the deduction limit up to 100% of a donor's annual income for cash gifts (previously the deduction was capped at 60% of annual income). If you make a gift you will be able to deduct more this year.
2. Donor Advised Funds
If you have a Donor Advised Fund (DAF) and wish to help us this year, you can make a gift from your DAF to support our work without affecting your personal financial security.
3. Charitable Gift Annuities
If you are concerned about your financial security given the ups and downs of the stock market, you may want to consider making a gift to fund a charitable gift annuity. You might be surprised by the benefits. You can exchange your low-performing stock, CDs or cash for guaranteed, lifetime fixed payments. If you make a gift of an appreciated asset, you will not have to pay capital gains when you fund the annuity. You may also benefit from a tax deduction this year and a portion of your payments could be tax-free.
4. Charitable Bequests
Many of our friends are updating their estate plans. If you would like to support our cause with a charitable bequest, we can help. Please contact us for a copy of our free estate planning guide. We can provide you with our bequest language and estate planning attorney referral list. Please contact us for assistance with creating and updating your plans.
5. IRA Charitable Rollover Gift
The required minimum distributions (RMDs) return this year, Congress did not extend the RMD holiday for 2021. IRA owners age 72 and older will resume taking RMDs. If you are 70½ or older, you can use your individual retirement account (IRA) to support our cause. Making an IRA charitable rollover gift to us may lower the income and taxes from your IRA required minimum distributions. Please call us to learn about the benefits of making an IRA charitable rollover gift this year.
If you are interested in learning more about any of these ideas, please contact us. Please also let us know how we can help you during this time.