Maximizing the Impact of Your Generosity

November 19, 2020

Dear Clients and Friends,

This holiday season, you may feel inspired to give differently. With public health crises throughout the United States on the rise, non -profit organizations are at the forefront in providing relief and assistance. In an effort to encourage charitable giving in 2020 to such organizations, Congress has included two provisions in the CARES­Act which reward taxpayers donating to qualified charities by:

  • Allowing up to $300 ($600 for Married filing joint returns in 2021) of cash contributions as an “above-the-line” deduction. This means that if you claim the standard deduction you can still receive a tax benefit from charitable giving by reducing your adjusted gross income (AGI) by that amount; or
  • Waiving the 60% of the AGI limit that normally applies to cash contributions for individuals who choose to itemize. For those that itemize, you can deduct more of your charitable cash contributions this year.

For larger donations, it might make more sense to make a deferred donation that will benefit both your charity and you for years to come. There are several deferred giving plans that usually allow you to retain the benefit of the donated funds while providing a gift to the charity at a later date. This allows you to receive an immediate income tax deduction for the value of your gift, while ultimately avoiding capital gains tax on any appreciated value. We can help identify which deferred option would work best for your situation, if any.

The challenges many face this year are substantial, yet the opportunities for individuals to make a difference are great as well. Whether it’s showing more support locally by ordering carry-out at your favorite restaurant, volunteering for local organizations, or increasing your cash contributions, we are here to help you maximize the impact of your generosity this holiday season. Together, we will continue to get through this.

Stay safe and healthy,

The CJBS Team

UPDATED: December 2021