Double your gift now, new tax incentives due to Cares Act
Giving at this time of the year is crucial to the success in 2021. There are many ways to give and impact the lives of hurting children. A big bonus in giving now through the end of January is your gift will be doubled. Your gift will be matched dollar for dollar up to $250,000.
Become a Christmas sponsor and bring Christmas cheer to every child. You can give a gift of $50 to be a Christmas sponsor for a child. A gift of $600 sponsors a cottage.
What better gift to give a friend or business associate than to honor them with a gift that blesses a child. BCH notifies honorees with a card and sends a gift acknowledgement receipt to you.
Consider a gift of cash or a gift of appreciated stock or other property. When you give stock or property to BCH, we sell it. By donating the stock or property directly to BCH, you eliminate the capital gains tax you would pay if you sell it. If you have held the stock for more than a year, your gift will be deductible at its full market value on the date it is received.
Be sure to call our office if you plan to make a stock gift. Often the broker will not inform us of the donor who is making the gift. For questions about stock gifts or to expedite your stock gift, call Sam Barefoot at 336-474-1224.
As a result of the Cares Act you do not have to make a required minimum distribution this year from your IRA. However, an IRA Charitable Rollover gift is still a great way for you to change the life of a child.
The Cares Act created several incentives for individual giving in 2020. These include:
• A new deduction for charitable donors who do not itemize when filing their tax returns. If you do not itemize but make a gift to charity, you will be able to take a special tax deduction, up to $300 to reduce your tax liability.
An example of this above the line deduction is a taxpayer who takes the standard deduction and makes a $300 cash gift to a public charity (BCH) in 2020 may claim the $300 deduction in computing their AGI. The gift deduction is in addition to their standard deduction.
• The Cares Act lifted the cap on annual contributions to public charities (BCH) for individuals who itemize. The provision in the Cares Act provided an increase in the deduction limit up to 100% of a donor’s AGI for cash gifts to qualified charities (BCH). Prior to the Cares act the deduction was capped at 60%. Any excess contributions available can be carried over to the next five years.
Note: For corporations, the new law raises the annual limit from 10% to 25% of taxable income.
Important, this information is not intended as legal advice. Consult with your accountant, tax advisor, or attorney to determine the best strategy for your particular situation.
Thank you in advance for your investment in the life of a child. There are those who wish they could give at this time, but can’t. Will you pray about giving a little extra on their behalf.
And remember, your gift will be matched dollar for dollar up to $250,000 until January 31, 2021. For more information, call Brenda Gray, BCH Executive Vice President of Development & Communications, at 336-474-1230.