Wouldn’t it be wonderful if the holiday season became more widely known as “The Giving Season?” Whether it’s giving of our time for a long overdue get together, sending a thoughtful message or gift to people we care about, or doing what we can for people in need, this is truly the time to celebrate The Giving Season.
DuPage Foundation was created with a single purpose: to raise the quality of life throughout DuPage County and help people give efficiently and effectively to the causes that matter most to them—not just on Giving Tuesday, or during The Giving Season, but throughout the year. Matching interests and resources with opportunities to make a difference for those in need is the cornerstone of our work.
As you consider your year-end giving intentions, here are some strategies to keep in mind to maximize your impact and potential tax benefits:
2021 CAA Incentives – The extension of several charitable giving incentives from the 2020 CARES Act into 2021 as part of the Consolidated Appropriations Act (CAA) offers several opportunities for all types of donors.
Taxpayers taking the standard deduction may deduct up to $300 per individual, or up to $600 if married and filing jointly, for cash contributions made directly to qualified charities during 2021.
Those who itemize may also deduct up to 100 percent of their adjusted gross income (AGI) for cash gifts to qualified charities vs. the usual 60 percent of their AGI.
Both provisions exclude contributions to donor-advised funds, private foundations and supporting organizations. Gifts to those entities will be taxed according to normal deductibility rules.
Gift Appreciated Assets Held for a Year or More to a Qualified Charity – Those who itemize can receive a potential charitable deduction for the fair market value of the donated assets (up to 30 percent of their AGI) while potentially eliminating the capital gains taxes they would otherwise incur upon the assets’ sale. While some people may think the right thing to do is to sell highly appreciated assets and then donate the proceeds, the better strategy is to donate the assets directly to charity.
Make Qualified Charitable Distributions (QCDs) from Your IRA – Another great option for maximizing your charitable impact while minimizing your income tax liability is to make Qualified Charitable Distributions (QCDs) from traditional and other types of IRAs to qualified charities. QCDs are available to individuals who are 70 ½ and older and count essentially as tax-free charitable gifts. Once you reach the age of 72, QCDs can also be counted toward your IRA Required Minimum Distributions (RMDs). You will not receive a tax deduction for making such gifts but they will lower your AGI, thus reducing your tax liability.
Open a Donor-Advised Fund – Donor-Advised Funds (DAFs) are an excellent tool to make a charitable gift now and receive an immediate tax deduction while retaining the flexibility to give to your favorite charities of choice over time. A DAF is generally every bit as impactful as creating a private foundation but will save you the time, expense and headaches of the ongoing administrative responsibilities that go along with maintaining a private foundation. Opening a DAF through DuPage Foundation is simple and can be done by contacting any member of our Advancement team. Once in place, your fund will be invested to grow and you will be able to recommend grants to any qualified 501(c)(3) charity of your choosing, locally or nationally.
Give Through Your Estate Plan – Not all gifts need to be made right now. Consider creating an impactful legacy by naming one or more of your favorite charities as a beneficiary of your will, trust, life insurance policy, retirement fund, or other account. You can also partner with DuPage Foundation to support your community and one or more favorite causes (local and national) through us.
Give the Gift of Time – Become a volunteer and support your favorite charity. Many not-for-profit organizations consider volunteers to be their most precious resource. Visit Giving DuPage, our community’s clearing house for volunteer opportunities, at givingdupage.org to learn more.
DuPage Foundation is your community foundation and the leading philanthropic organization in DuPage County. Established in 1986, we manage more than $125 million in assets and have awarded more than $60 million in grants to not-for-profit organizations serving the residents of DuPage County and beyond. Individuals and organizations seeking to provide impactful support in DuPage County to address critical issues can create powerful customizable gift solutions and partnerships through DuPage Foundation.
If you wish to make the most of your charitable giving, please contact us at 630.665.5556 or visit dupagefoundation.org for ways you can help SEE MORE IMPACT this “Giving Season.”
