Ways to Give at Year End

TAX INCENTIVES

The CARES Act expands charitable giving incentives and allows taxpayers who take the standard deduction to make up to $300 filing single and $600 filing jointly of philanthropic contributions to qualified charities this year. You might think that this is a small amount and would not make a difference. But what if all our donors gave “just” $300? Such support would have a significant impact on those we serve.

For those who itemize their deductions, the law allows for cash contributions to qualified charities such as North Florida Land Trust to deduct up to 100% of your adjusted gross income for the 2021 calendar year.

REQUIRED MINIMUM DISTRIBUTIONS

The CARES Act extended the unlimited charitable contribution for cash gifts to most public charities through the end of 2021. This creates an essential once-in-a-lifetime opportunity to move substantial amounts from retirement plans to charity beyond the $100,000 qualified charitable distribution already allowed to Individual Retirement Account (IRA) owners without adverse income tax consequences. 

Your gift will be put to use today, allowing you to see the difference your donation is making.

You pay no income taxes on the gift. In addition, the transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions. Since the gift doesn’t count as income, it will not increase your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.

GIVE A GIFT OF STOCK 

By giving stock held for at least a year, the 15 percent capital gains tax typically incurred can be potentially eliminated if you sell. In addition, stock donations to charities, like the North Florida Land Trust, are eligible for a charitable tax deduction on both federal and state taxes—adding up to potentially significant savings.

BENEFICIARY DESIGNATION

IRAs or other qualified retirement plans are often one of the most tax efficient assets to leave to charity because they are taxed so heavily when left to heirs. When you designate a nonprofit, such as the North Florida Land Trust, as the beneficiary of an IRA as part of your estate plan, 100 percent of the gift will be available to support your philanthropic interests.