Article written by Jory Barrad, Pathway’s Director of Development and Communications
Here we are, rapidly approaching the end of the calendar year…again! This is the time of year when many are not just thinking about gift-giving for the holidays but also charitable giving.
Recent tax legislation related to the CARES Act continues to offer provisions helping individuals and businesses who give charitable donations to qualified nonprofit organizations. These provisions extend temporary tax changes through the end of 2021. They are described in more detail on the IRS website. Here’s a brief overview of some of these important changes that may benefit you.
- For individuals who don’t normally itemize deductions for their tax returns (those who take the standard deduction), they can claim a limited deduction for qualified charitable donations on their 2021 returns – $300 for individuals and $600 for married individuals filing joint returns. People who do itemize also qualify for this deduction in 2021.
- Taxpayers who itemize can generally claim a deduction for charitable contributions limited to 20% to 60% of their adjusted gross income. This law now allows taxpayers to apply up to 100% of their adjusted gross income for 2021 qualified charitable contributions.
- The law now permits C corporations to apply an increased corporate limit of 25% of taxable income for charitable cash contributions made to eligible charities during the 2021 calendar year.
Unlike 2020, there is no waiver from taking the required minimum distribution from your IRA and retirement accounts. If you are age 72 or older in 2021, you must withdraw at least the required minimum distribution by December 31, 2021. For more information, visit the IRS website. Did you know that to avoid paying taxes on your required minimum distribution you can donate all or a portion of your RMD to a qualified nonprofit organization? These are called qualified charitable distributions, or QCDs. Please consult your tax professional regarding the guidelines pertaining to this tax legislation, and RMDs, when making decisions about your charitable giving, the impacts, and benefits to you.
There are other ways that you can support your favorite charitable organization, including The Pathway School, aside from typical “cash” donations:
- Matching Gifts – Does your company/employer offer matching gifts to the charities you support? It’s a great way to double the impact of your giving!
- A gift of Stock – gifting stock rather than selling it avoids having to pay capital gains.
- Planned Gifts – a gift from your will or estate that may not involve any “out-of-pocket” money today and will benefit you and your heirs down the road.
- Amazon Smile and Wish Lists – If you shop on Amazon, sign up for Amazon Smile and select The Pathway School as your charitable organization. Every time you shop, Amazon donates to your selected organization at no cost to you! Pathway also has a wish list where you can purchase items that are needed by education and clinical staff – your purchases from our wish list ship directly to us. Click here for The Pathway School’s Amazon Wish List.
There is still time to donate before the end of this year!
You make the difference for our students and their families and we appreciate you! You can donate securely online at our website, or you can mail your donation to Pathway. Just be sure, if mailing, that your donation is sent prior to December 31st!
For assistance with any type of donation, please contact:
Jory Barrad, Director of Development & Communications – firstname.lastname@example.org or 610-277-0660 ext.258
The Pathway School Development Office
162 Egypt. Rd.
Jeffersonville, PA 19403