It's giving season! Here are a few tips to help with your 2020 charitable giving strategy. If you have specific questions about your individual plan, please give us a call and we can discuss together.
Do Your Research
Websites such as Guidestar, the Better Business Bureau's Wise Giving Alliance, and the tax-exempt organization search tool on the IRS website are great places to learn more about different groups to support.
Consider a Donor-Advised Fund
Donor-Advised Funds (DAFs) have emerged as a popular charitable giving tool for a variety of reasons. They can be very favorable from a tax perspective, can handle contributions of a wide array of assets, are easy to set up and costs are low.
Take Advantage of the CARES Act
The CARES Act is the major relief bill that went into effect last spring. Among the many opportunities outlined in the bill was the incentive for donors to give away more money. For the remainder of 2020, taxpayers can deduct up to 100% of their adjusted gross income for cash donations to public charities. There are some exclusions, of course, so be sure to contact our team and/or your tax professional with any questions.
Remember to keep records of the gifts you make, no matter the size. For contributions of $250 or more, you are required to obtain a written acknowledgement from the qualified charity, detailing the amount and description of property, if applicable.