4 Strategies for Year-End Giving in 2021

It's the season for year-end giving, and soon a lot of charities and nonprofits will let you know. We get it! With so much information flying around, we highly recommend you cut through the noise and consider these four key tax strategies before late December:

1. Don’t miss out on the few provisions of the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act that carried over to 2021, including the ability to deduct up to 100% of adjusted gross income (AGI) for cash gifts made directly to qualifying charities and the “universal” charitable deduction of $300 per taxpayer ($600 for a married couple).
2. Unlike in 2020, when pandemic relief laws offered a tax break, this year you will have to take required minimum distributions from your qualified retirement account. Especially those who take the standard deduction, ought to consider a qualified charitable distribution, which allows eligible individuals to donate up to $100,000 directly from individual retirement accounts to a qualified charity. Community Foundation of the Lowcountry is happy to help you identify a nonprofit or structure a qualifying fund to receive a distribution.
3. “Bundling” or “bunching” multiple gifts into tax year 2021 can help if you've had an exceptionally high incomes this year. Donor-advised funds at the Community Foundation are particularly useful in these situations. We’d love to discuss this option!
4. We know you strive to identify the optimal tax strategies for your charitable giving. As always, please contact us to find out how we can make year-end tax savings as frictionless as possible for you.

The team at the Community Foundation also works with professional advisors, and we're happy to work with those who advise you on financial planning and related matters.

As always, we recommend that you consult with your legal, tax and financial advisors regarding your specific giving situation.