It is a time of year that for many inspires gratitude and generosity. At the Community Foundation of the Holland/Zeeland Area, we are grateful for the community we serve and the many generous individuals who give back with their time, talent, and treasure to make this place we call home so special. If you are considering how you will make a difference this year, consider these tips to make your charitable dollars go further.
The CARES Act: The CARES Act increased the AGI limit for CASH donations to public charities to 100% for individuals and 25% for corporations. Any unused deductions may be carried forward for up to 5 years. For taxpayers who do not itemize they may take an above-the-line deduction of up to $300 for individuals and $600 for couples filing jointly for CASH donations. *The CARES Act charitable giving incentives are set to expire after 2021. Gifts to Donor Advised Funds do not qualify for the Cares Act incentives.
IRA QCDs: If you are 72 or older, consider using your required minimum distribution to support your charitable giving. Qualified Charitable Distributions (QCD) allow donors to avoid paying income taxes on distributions up to $100,000 annually while supporting causes in the community. QCDs may not benefit Donor Advised Funds, but they can benefit any other fund at the Community Foundation including the Community’s Endowment, Designated Funds, Nonprofit Endowments, Scholarship Funds, etc.
Appreciated Assets: Stocks, bonds, mutual funds, crypto or any other appreciated property owned for at least one year can be donated to a public charity for a deduction of the fair market value without paying capital gains taxes.
Donor Advised Funds: These are a popular tool to organize an individual’s or family’s giving. DAFs make it easy to “bunch” or “bundle” multiple years of giving into one tax year to exceed the standard deduction. DAFs allow you to give to the fund, receive an immediate tax deduction, invest the assets, and advise on grants made from the fund to your favorite charities over a period of time.
*We always suggest that individuals consult with their legal, financial, or tax advisors to discuss giving strategies that best align with their financial and charitable goals. After that, contact Colleen Hill, Vice President of Development & Donor Services, at chill@cfhz.org or by calling 616–994–8853, and we will work together to employ smart giving strategies.
