Gratitude and Year-End Giving

Thanksgiving has always been a celebration of gratitude.  Many of us may be especially grateful to spend time with loved ones we may have missed last year.

As we gather with loved ones during the holiday season, we may find ourselves reflecting on the values and priorities that are of utmost importance to us. Giving back is often top of mind during this season, and as you think about your favorite ways you like to give back, please remember these opportunities to increase your impact:

  1.  CARES Act Charitable Benefits. As we discussed in last month’s newsletter, the Coronavirus Aid, Relief, and Economic Security (CARES) Act benefits from 2020 were extended into 2021 and are still available for donors to utilize. For some, it may mean taking advantage the Universal Charitable Deduction of $300 or $600, depending on how you file. For others, it may be leveraging the 100% Adjusted Gross Income (AGI) limitation for gifts of cash.
  2. Donate Appreciated Securities. Donating appreciated securities from your investment portfolio creates TWO tax benefits. The tax deduction is the same size as a gift of cash if the investments have been owned for a year or more. You also avoid paying capital gains tax. PLUS, if you are “cash heavy” you can use that cash to repurchase those same investments at a higher basis. WIN, WIN, WIN!
  3.  Bunch Donations. Under the current tax law, the standard deduction is $12,550 for individuals and $25,100 for married couples, making it harder for people to itemize on their tax return and benefit from the charitable income tax deduction. If you itemize your deductions, you can combine multiple years of charitable contributions into one calendar year to maximize your tax benefit. Grants to support your favorite charities can be spread out over time, even in future years when you take the standard deduction.
  4. IRA Charitable Rollover. Make a Required Minimum Distribution (RMD) from your IRA directly to Community Foundation of Lorain County tax-free. Or use up to the maximum allowable threshold of $100K to make a larger gift. While RMDs can’t support Donor Advised Funds or Supporting Foundations, this may be an opportune time to support your favorite charities or areas of interest with a rollover to one of the Foundation’s other funds, or create your own Unrestricted, Field of Interest, Scholarship or Designated Fund.
  5. Give Thanks Now, Make the Gift Later. Many insurance companies are in their open enrollment period, reminding individuals to review their existing life insurance policies. Consider making the Community Foundation of Lorain County a beneficiary of all or part of your life insurance. This type of gift costs nothing today but will create a benefit that will last in the community for lifetimes to come.

Not all of these options may apply to your specific situation, and you should discuss with your legal, financial, and/or tax advisors. Remember that all gifts need to be completed by December 31st to qualify as a 2021 charitable deduction. Many institutions may have internal deadlines for initiating some of these strategies to ensure the gift is completed before the end of the year.

To learn more about how your gifts can make a lasting impact, contact Laura Malone, Development Officer, at 440.984.7390.

Questions about Year-End Giving?