Year-End Strategies for Charitable Giving
Like you, Greater Indy Habitat is adapting in response to the COVID-19 pandemic, uncertain economy, and growing social and political unrest in our county.
For every dark moment in our history, there are countless tales of everyday people coming together to accomplish extraordinary feats. We have been blessed to have many individual, community and faith partners continue to walk alongside us and our families in 2020. Because of you 16 families will complete and purchase their first homes in 2020.
As the year is coming to a close, many people are thinking about how they can make an impact through a tax-deductible donation to Greater Indy Habitat. If that is you, I wanted to share a few beneficial strategies to consider. These may be helpful tools and I have worked closely with others that have used them to maximize their generosity while keeping their liabilities low. If you have questions about any of the below, or any strategies to help your generosity, please reach out to me!
Gifts of Stock or Securities
While donations by cash or check are the most common methods of charitable giving, contributing stocks, bonds, or mutual funds that have appreciated overtime have become increasingly popular in recent years. Typically, no capital gains taxes are owed when securities are donated, not sold. With many stocks appreciating sharply in August, this may be a good time to consider this donation strategy.
Required Minimum Distributions Waived in 2020
Even though Required Minimum Distributions (RMDs) are waived, if you are at least 72 years-old, have an IRA, and plan to donate to Greater Indy Habitat this year, consider making a Qualified Charitable Distribution (QCD) from your IRA. This may allow you to satisfy charitable goals and allows funds to be withdrawn from an IRA without any tax consequences.
The CARES ACT: Good News When We Need It Most
Here’s some good news! Among the charitable giving provisions, the CARES ACT includes a temporary, partial above-the-line charitable deduction for cash gifts (up to $300) in 2020 to encourage gifts by taxpayers who are unable to itemize under current tax law. The legislation also modifies the limitation on qualified charitable gifts of cash to 100% of AGI for itemizers in 2020. I’m happy to talk through these changes with you!
If you have questions about donations of stock or making a gift from your IRA, we encourage you to reach out to your wealth manager before the end of the year. Or feel free to contact me, Janine Robertson, Impact Giving Officer, at email@example.com or 317.922.2025.