Thank you again for opening your heart to the work of Lift Up the Vulnerable. The prayers, support, and financial resources you have invested are empowering real kid heroes in miraculous ways!
As we approach the end of 2021, I wanted to be sure you knew that right now is an excellent time to build on that investment. Whether you itemize deductions or not on your annual tax return, there are temporary opportunities in the tax law encouraging you to invest in our charitable organization now.
But those provisions are set to expire on December 31!
This is so important that the IRS actually issued a special “tax tip” earlier this fall for generous givers like you.*
Here is the gist (in plain English) of the benefits meant to support your giving this year:
• It may not make sense for you to itemize deductions every year — that is the case for many givers. But shouldn’t the tax code give some credit to your gifts? We think so, and thankfully Congress agreed… at least at the start of the pandemic. Right now, you can deduct up to $300 contributed to this ministry during 2021 — $600 if you are a married couple filing a joint return — even if you do not itemize and instead take the standard deduction.
• If you do itemize deductions, this is for you. Usually, your eligible gifts cannot exceed a specific fraction of your income. But for gifts in 2021, you can generally elect to claim a charitable deduction for cash donations up to 100 percent of your adjusted gross income (consult your tax professional or read the IRS update noted below for limited exceptions).
• If you run a business, there are incentives for you, too. The deduction thresholds for cash and food donations for many businesses have temporarily increased depending on your status as a corporation, sole proprietorship, and so forth. It is definitely a benefit to explore with your accounting team. Again, these incentives are slated to end this year, so please consider taking advantage of these opportunities before December 31.
Another idea is not in the IRS tax tip but is worth considering. You might reduce your tax bill by making a distribution from your IRA to our ministry. This can satisfy the required annual minimum distribution for taxpayers age 70½ or older, while not resulting in taxable income. It’s effectively another way to qualify for a charitable tax benefit — whether you itemize on your taxes or not!
Finally, want to make a gift of stock? Call us today! A stock transfer is an easy way to make a gift to LUV while avoiding capital gains taxes. Shares can be transferred electronically through your brokerage account or you can donate paper shares if you hold the certificates. You will receive an income tax deduction on the fair market value of the shares on the date of transfer into Lift Up the Vulnerable’s brokerage account. Learn more.
Thank you again for your continued partnership with Lift Up the Vulnerable. Our team is truly humbled by your generosity, and we thank God for you continually as we remember you in our prayers.