So we reached out to Gregg Capin, CPA and Senior Advisor to CMI’s Board of Directors.
As a seasoned accounting expert who served for 40 years with CapinCrouse, LLP — the largest CPA firm exclusively serving nonprofit organizations — he knows a thing or two about directing your giving for impact.
Here are Gregg’s Top 3 Tax-Saving Tips for your End of Year Giving:
1. Property, Stocks, Bonds, and Mutual Funds – Markets have been volatile, but the S&P 500 is up around 20% this year and the value of residential property has increased significantly in many locations. Making gifts of appreciated property and investments directly to a charity is a great way to maximize impact and minimize taxes. Donating appreciated property and investments generally result in a charitable contribution deduction for the fair value of the donated asset avoiding income or capital gains tax above the purchase price or tax basis if one were to sell the asset and make a cash donation.
2. Gifts from Retirement Savings – Giving from retirement accounts is often an overlooked charitable giving option.
- Gifts can be made from IRA’s and other retirement plans.
- Individuals 70½ and older can direct up to $100,000 from an IRA per year through a Qualified Charitable Deduction (QCD).
- In addition, individuals 72 and older are required to take a Required Minimum Distribution (RMD) from their retirement accounts each year. Many people are not aware that they can use this as a Qualified Charitable Deduction.
3. CARES Act – Benefits of the 2020 CARES Act have been extended through 2021.
- Universal Charitable Deductions. As in 2020, individuals can take up to $300 in cash charitable contributions as an above-the-line deduction—meaning non-itemizers can claim it. New in 2021, couples who file joint returns can claim up to $600 of their charitable contributions, as opposed to the 2020 limit of $300.
- Increased Charitable Deduction Limits. Tax filers who itemize deductions are allowed to deduct up to 100% of their adjusted gross income (AGI) for cash gifts to public charities in 2021. Typically, this is limited to 60%.
- For more information, check out this helpful resource provided by The Signatry.
Of course, before utilizing any of these options, it is always wise to consult with your qualified financial and accounting advisors first.
Hope you find this helpful. Many blessings to you and yours this Christmas season!
EXECUTIVE DIRECTOR, Church Ministries International
Urban churches reaching urban centers in Latin America
P.S. If you would like to make these or other types of year-end gifts to CMI, we are available to help. Click here for additional details about giving options. Or simply reach out to me at email@example.com.