Though many of our donors are not motivated by tax incentives, there are some special tax incentives this year that we hope you will benefit from knowing.

If you take the standard deduction and do not itemize, you can still deduct $300 in charitable gifts ($600 if married filing jointly) from your 2021 taxable income.

If you do itemize, usually your eligible gifts cannot exceed a certain fraction of your income. However, for gifts made in 2021, you can generally deduct charitable contributions up to 100% of your adjusted gross income. If you are age 59-1/2 or older, you may be able to donate from your IRA and deduct the full amount of your contribution as well. (Consult your tax professional and read the IRS update noted below for limited exceptions.)

If you run a business, the deduction thresholds for cash and food donations for many businesses have temporarily increased, depending on your status as a corporation, sole proprietorship, etc. You may want to explore these giving options with your accounting team.

If you are age 72 or older and have an IRA, you might reduce your tax bill by making a charitable distribution directly from your IRA. This can satisfy the annual required minimum distribution (RMD) requirements without resulting in taxable income.

While the IRA benefit should remain in place after this year, the other tax benefits are good only for gifts made on or before December 31, 2021.

More information is available at the IRS website.