GIVE SMART IN 2021: The Consolidated Appropriations Act and Other Creative Ways to Benefit by Giving

GIVE SMART IN 2021: The Consolidated Appropriations Act and Other Creative Ways to Benefit by Giving
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Thank you for your support of the Van Wezel Foundation. While health and wellbeing of our family and loved ones is our top priority, our office is open as a resource for donors considering making an impact and taking advantage of tax savings this year.

The Consolidated Appropriations Act (CAA) replaces the expired CARES Act, which was created to help individuals, businesses, and nonprofits facing economic hardship during the coronavirus pandemic. While many of your giving options and opportunities have not changed, there are a few key points to note:

TAX INCENTIVES

  • For the 2021 tax year, you may deduct cash contributions to the Van Wezel Foundation to offset up to 100% of your income. Ordinarily, the income tax charitable deduction for cash gifts is limited to 60% of your income. This 100% limit allows especially generous donors to reduce their federal income tax to zero. If you are even more generous, you can carry forward unused cash contribution deductions for up to five years.
  • If you don’t itemize you may reduce your taxable income by $300 for your charitable contributions in 2021. If you do not itemize your deductions, you can still reduce your taxable income by up to $300 (or $600 for married couples filing jointly) for contributions of cash to public charities using an “above the line” adjustment to reduce your taxable income.

Reminder: While you may look at $300 as a small gift, we remind you that gifts of all types and sizes combine to have a huge impact.

WHAT’S NOT INCLUDED

The CARES Act suspension of Required Minimum Distributions has not been extended into 2021. The CARES Act of 2020 waived required minimum distributions (RMD) for the 2020 tax year. That waiver has not been extended.  However, this remains a beneficial option.

A GIFT FROM YOUR IRA IS STILL A GREAT OPPORTUNITY

If you are 70½ or older, you can make a gift from your IRA or name the Van Wezel Foundation as a beneficiary.

  • Foundation will benefit from your gift today; you can see your generosity in real time.
  • You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
  • Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your amounts that are subject to tax.

OTHER STRATEGIC GIVING OPTIONS

  • Bequests: designating the Foundation as the recipient of a specific amount or percentage has no impact on you now but will have a large impact on our mission of arts education. [sample language]
  • Beneficiary: including the Foundation as a beneficiary of a life insurance policy, 401(k), or other retirement account is always an easy way to plan a gift
  • Charitable Gift Annuity: establishing a CGA with the Foundation guarantees fixed payments to you (and may offer a particularly attractive percentage rate)

In these delicate and unprecedented times, we’re especially grateful for your support. Planned gifts sustain our ability to carry on. If you plan to leave a legacy with the Van Wezel Foundation and the future Sarasota Performing Arts Center, we want to know.

We welcome your questions and comments. Contact us any time.

Suzanne Hudson-Smith, CFRE   ·   shudsonsmith@vwfoundation.org   ·   941-271-4178 (O)

As always, please consult a qualified advisor before making a new gift commitment.

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