2020 Year-end Giving Tips for Donors
Now is a great time for giving, and this year our community needs you now more than ever. When you make a donation by December 31, 2020 to the Lehigh Valley Community Foundation, you aren’t just giving money—you’re making a difference in our community. Here are some things to consider for your year-end giving.
Take advantage of CARES Act tax advantages for 2020
Consider a $300 year-end donation to Lehigh Valley Community Foundation, either through your Fund or as an unrestricted gift to the Foundation. Through the CARES Act, taxpayers who do not itemize can claim an above-the-line charitable deduction up to $300.
The CARES act also temporarily suspends or increases certain percentage limitations for cash charitable contributions made during 2020. For taxpayers who itemize deductions, cash contributions made during 2020 will not be subject to Adjusted Gross Income (AGI) limitations. Prior to tax year 2020, an individual’s charitable contributions made in cash were limited to 60% of their AGI.
Make a tax-free distribution from your IRA
If you are receiving taxable income from retirement plan assets or life insurance policies, there are a number of tax-advantaged ways to make these assets work for you and the causes you support. For example, donors age 70 1/2 or older may be eligible to donate up to $100,000 from their IRA without counting the distribution as income.
Give now-Decide later with a Donor-Advised Fund
This is a great way to claim a tax deduction now for supporting your favorite charities in the future. Donor-advised funds can be created quickly and easily with a gift of $5,000 or more. And, with a gift of appreciated stock or mutual funds, you avoid paying capital gains tax on the sale of the stock and receive an immediate charitable income tax deduction for the full value of the asset.
DAFs and Bundling: Some donors are opting to bundle or “pre-fund” their giving. This means donating two, three, or more years’ worth of giving at one time into a DAF, claiming the charitable deduction that year, and then waiting to donate again while claiming the standard deduction. A DAF gives you the option to bundle the donation to your DAF that first year, and then continue to support your favorite causes in future years from the DAF.
Give early and complete your gift by December 31
A gift by check is complete when mailed (postmarked) to the charitable recipient, even if not cashed until the following year. Gifts by credit card are complete when your credit card account is charged. Gifts of stock and real estate are more complex; don’t wait until late December to make these gifts as it may be too late to make the necessary arrangements.
Let the Community Foundation do the work
Working with the Community Foundation gives you access to our extensive knowledge of the local nonprofit community and the broad charitable needs of our region—so you can stay informed about the organizations you support and the effect your giving will have on the future of our community.
ASK CARRIE | Ask me how the Community Foundation can help you create a lasting legacy and make a difference in the community....
Carrie Krug Nedick
Director of Donor Services
840 West Hamilton Street, Suite 310, Allentown, PA 18101
610 351-5353 Ext. 10 | firstname.lastname@example.org