As we approach the end of the calendar year there are opportunities for donors to benefit from tax savings based on their charitable giving. This is especially true in 2021.

Here are some things to consider: 

CARES Act tax benefits. In 2021, cash gifts made to qualified charities can be used to offset up to 100% of your adjusted gross income. In 2022, the deductibility of cash gifts will be limited to only 60% of your adjusted gross income. That means donors can save more in taxes if they make a cash gift before December 31, 2021.

And if donors are among the 90% of American taxpayers who take the standard deduction, they will once again be able to deduct $300 in charitable gifts from their gross income in 2021. That provision from the CARES Act was extended through 2021 in the December stimulus bill. Moreover, in 2021 a couple filing jointly may deduct up to $600. This above-the-line deduction applies only to cash gifts made directly to a non-profit; they cannot be made into a donor-advised fund.

IRA Required Minimum Distributions are Back. After being waived for 2020, required minimum withdrawals (or RMDs) from IRAs are again in force for 2021 for individuals age 72 and older. If donors wish to support nonprofit organizations with this RMD income, they can donate it as a qualified charitable distribution. This way, their IRA will not generate taxable income for 2021. If will be donating your RDM income to ROA STARs, here is the information you will need:

Qualified Charity Name: 
ROA Standing Together for Americas Reservist Foundation
Address: 1 Constitution Avenue NE, Washington, DC 20002
Contact: Jeffrey Phillips, Executive Director
Phone: (202) 479-2200
EIN/Tax ID#: 46-1374538

Timing Your Gifts. If you mail a check, it must be dated and postmarked by the U.S. Postal Service on or before December 31, 2021, to qualify for a tax deduction this year. If you use a credit card, the gift is considered to be made on the date of the charge, regardless of when you pay your credit card bill.

If you'd like to make a gift before the end of the year click here.