SEE THE BENEFITS & GET THE PROVISIONS
As By Any Means, our two-year generosity initiative, enters its final year in 2022, we want to make sure you’re aware of a unique giving opportunities related to the annual limitation for charitable tax deductions.
Here are a few practical year-end giving tips as you prepare your gifts at the end of 2021:
POST MARK CHECKS ACCURATELY
1) Make sure all checks are post-marked by December 31 and that they are mailed to the church office at The Well, [1235 Pine St, Boulder, CO 80302]. You are also welcome to hand-deliver a check gift, either in person at church on Sunday through our giving boxes or during office hours during the week, Monday-Friday 9am-4pm. We will have limited office hours December 24th - January 2nd, but don't hesitate to let us know if we can meet you at the church office at a certain time that is convenient for you, and we certainly can.
STOCK GIVING PROVISIONS
2) Now is a great time to give stocks and other marketable securities. Giving stocks is a great way not only to maximize your charitable giving through an investment you've made but also to do so in a tax-efficient manner as you avoid the capital gains tax on the investment while receiving a full charitable deduction!
To initiate giving stock, you can contact Michelle our Business Administrator at firstname.lastname@example.org
TAKE ADVANTAGE OF THE CARES ACT
3) In response to the Coronavirus pandemic, Congress passed the CARES Act in March of 2020. While this piece of legislation was best known for provisions such as direct payments to Americans, the Payroll Protection Plan, and extended unemployment benefits, it also includes a lifting of the cap on charitable deductions. (This type of opportunity hadn’t occurred since 2006 in the wake of Hurricane Katrina, which indicates its rarity!) The Consolidated Appropriations Act (CAA), enacted on December 27, 2020, extends this benefit to 2021.
In a normal year, taxpayers must limit their charitable deductions for cash gifts to 60% of their adjusted gross income. But under the CAA which extends the CARES Act, individuals making cash gifts can elect to increase this limit to 100% of their adjusted gross income (AGI).
GET UNIQUE TAX BENEFITS
For those planning major gifts, this is an opportunity to eliminate or greatly reduce federal income taxes for 2021. (Note: When gifting marketable securities or other types of stock, donors are still limited to deducting 30% of their adjusted gross income. However, the same donor could also deduct cash gifts up to 70% of his/her adjusted gross income in order to take advantage of the full 100% deduction, if desired.)*
We realize these provisions don't apply to everyone at The Well, but we hope informing you of these great tax benefits will help you make the most of your 2021 giving.
Once again, thank you for advancing God’s work through The Well. We are more grateful than ever for your generous partnership as we strive to help everyone By Any Means!
*This is merely for informational purposes and is not to be considered financial advice. For more specific insight on your particular situation, we encourage you to consult your tax or financial advisor.