As the end of the year approaches, the spirit of giving is upon us! Despite an economic downturn, an unprecedented $471 billion was donated to U.S. charities in 2020. This trend is expected to continue as we recognize there are still so many affected by the pandemic.
Donations to education, human services, environmental organizations, and animal organizations were among the top recipients of charitable donations last year. Those organizations can always use more donations, but if you want to focus your giving on something personally meaningful to you, or just where it is most needed, you can use this website to search for an organization matching the criteria most important to you.
Giving local is always a great choice as well to help those in your own community. Most city websites will have information and resources on local organizations, and how you can help.
As an added incentive to giving, due to the CARES Act of 2020, you can qualify for up to a $600 deduction for 2021 ($300 for individuals) for cash donations only, in addition to taking the standard deduction for charitable giving.
For those of you who do itemize, you are able to contribute up to 100% of your AGI for 2021. Previously, this was limited to a range of 20-60%, with excess contributions being carried forward for up to five years.
The corporate limit now permits C corporations to deduct 25% of taxable income for charitable cash contributions, up from 10% prior to 2020.
As always, keep good records of your donations. Get an acknowledgement letter from the charity/organization before filing your return, and keep a cancelled check or credit card receipt on hand for cash contributions.
If you have any questions about deductions or which organizations qualify, please reach out to your trusted financial professionals before making any moves!
Happy Giving!
