“We have been making charitable gifts directly from an IRA because they reduce the taxable portion of the minimum distribution required of us senior citizens. So, even though we have not been able to itemize our deductions (and there is no charitable deduction for the Massachusetts income tax) we get the same result on our federal and state taxes. The administrator of the IRA is now set up to make such gifts easily, and even to send the check (payable to the charity) to us for sending along to the charity. It’s a no-brainer to help the charities, like Cooley Dickinson Hospital, that are important to us.”
Kent and Scottie Faerber
As we near the end of the calendar-year, we wanted to share some tax-smart end of the year giving tips. We also wanted to bring to your attention a few extra deductions you may be able to take advantage of through the CARES Act, which will likely end after 2021.
- If you take the standard deduction, you can deduct up to $300 as a single filer and $600 as a married couple filing jointly.
- If you itemize, contributions to public charities are generally limited to a percentage of a taxpayer’s adjusted gross income (AGI). The CARES Act lifted the cap on annual contributions for those who itemize, increasing it from 60% to 100% of AGI for 2020 and 2021. Any excess contributions available can be carried over to the next five years.
Make a Donation through your IRA as a Qualified Charitable Contribution (QCD)
Are you over 70½ and do you have an IRA account? If so, the IRA charitable rollover (also known as the QCD) is a Great Tool for Giving.
What are the benefits?
- The IRA charitable rollover allows you to use your IRA to make tax-free charitable gifts directly from the account to eligible charities, like Cooley Dickinson Hospital, Cooley Dickinson VNA & Hospice, or your other favorite causes.
- Currently, the provision allows you to make qualified charitable IRA distributions of up to $100,000 per person per year. Best of all, if you are 73 or older, QCDs can be counted towards your required minimum distribution (RMD) for the year.
- IRAs also make wonderful charitable gifts beyond your lifetime through a beneficiary designation. Donating part or all of your unused retirement assets is a great way to support Cooley Dickinson Hospital or Cooley Dickinson VNA & Hospice.
How to take action:
To make a gift from your IRA, contact your financial advisor or IRA administrator, and then call Cooley Dickinson’s Development Office at 413-582-2687 to share your intentions.
Donate Stock or Securities
Do you have securities that have appreciated in value? Are you rebalancing your portfolio? When you make a gift of appreciated securities, your gift goes much further!
What are the benefits?
You can avoid capital gains tax and be eligible to receive an income tax deduction for the full fair-market value of the stock at the time of the gift.
How to take action:
- Reach out to our Development Office at 413-582-2687 and let us know that you would like to make a gift of stock. We will provide you with transfer instructions to share with your broker.
- Prior to making the transfer, we will need a brief note with the following information: the number of shares that you are transferring, name of the securities, and your broker’s name and contact information.
Our Director of Planned Giving Jenny Papageorge is happy to tell you more about planned giving options. We’d love to hear from you. You can reach her at jpapageorge@mgb.org or 413-582-2687.
