Together, we have played a key role in the discovery and availability of nearly every major T1D advance and we can’t stop now. Future breakthroughs start with us.
We know many of you will soon contemplate your year-end giving and during these challenging times will want to make the most of your charitable dollars. Fortunately, the US tax code fosters a tradition of generosity making the US the most philanthropic nation. Here are a few tax-wise giving strategies if you’re considering a year-end contribution to JDRF.
Cash is the still most popular way to make a charitable gift and could provide important tax benefits. If you itemize your deductions, cash contributions are 100 percent deductible. The CARES Act increased 2020 contribution limits, for those who itemize deductions, from 60 to 100 percent of adjusted gross income.
The CARES Act also includes a charitable giving incentive of $300 to you, even if you don’t itemize, making it easier to give to your favorite causes. This applies to cash contributions made in 2020 and can be claimed on 2020 Form 1040 when filing in 2021.
This incentive doesn’t apply to contributions to donor advised funds, private non-operating foundations, or section 509(a)(3) supporting organizations. All other contributions for which a deduction is allowable under section 170 are covered.
Stocks, Bonds, Mutual Funds
Gifts of appreciated securities can be one of the most tax-wise ways of giving. If you have owned your securities for more than one year, you may deduct the full fair market as a charitable contribution, while bypassing capital gains taxes.
Gifts of appreciated real estate are like gifts of appreciated securities. Assuming you have owned the property for more than one year, you may deduct the fair market value as a charitable contribution while bypassing all capital gains taxes.
Charitable IRA Rollover
If you’re 70½ or older, you can contribute up to $100,000 annually from your IRA without generating taxable income. This is an ideal way of making a tax-wise gift while satisfying your required minimum distribution (RMD). While 2020 RMDs are suspended, the Charitable IRA Rollover remains a tax-efficient giving strategy. Charitable IRA Rollovers are simple to make. A call to your plan administrator is all that is required to get started.
Donor Advised Fund
Giving through a donor advised fund (DAF) has become the fastest growing source of charitable gifts over the last two decades. You receive an immediate charitable tax deduction for each contribution you make to your DAF, provided you itemize your deductions. You can then contribute to JDRF and other charities at any time you choose, from one single account, simplifying your giving.
2020 is quickly coming to a close and it’s been a year of difficult challenges for many. Please consider your long-term charitable goals. Including JDRF in your estate plan is an important way to ensure research continues until we realize our vision of a world without T1D.
We appreciate your consideration and thank you for your support.
To learn more about how you can support T1D research and benefit financially, please call us toll-free at 877-533-4483. Our services are free and there’s never any obligation.