Charitable giving in 2021 pays off! A couple of key provisions in the CARES act have been extended into 2021.
- The universal charitable deduction was extended and upgraded. Even if you do not itemize, the CARES act allows for “above the line” deductions for charitable cash gifts up to $300 for single filing taxpayers and $600 for joint filers in 2021.
- For tax filers that do itemize, you can elect to deduct up to 100% of your Adjusted Gross Income (AGI) for cash contributions made in 2021. Prior to the CARES act, this was capped at 60%.
Keeping these incentives in mind, we want to let you know about a few giving options available to support Denver Public Library (DPL).
Support DPL and maximize your tax savings:
Qualified Charitable Distributions:
The required minimum distribution was waived in 2020 but resumes in 2021. Withdrawals from a traditional IRA paid directly to DPLFF will count toward the required minimum distribution and the distribution will not be taxable. The account owner must be at least 70½ years of age and qualified charitable distributions are limited to $100,000 per taxpayer per year.
Gifts of Appreciated Stock:
Donating appreciated stock is a great way to support DPL and an effective means of tax savings. If the security has been held for more than one year, your gift is fully deductible up to 30% of your adjusted gross income. Excesses can generally be carried forward to future years. When you make a stock donation, our broker, RBC, sells it upon receipt so that your gift can be put to use supporting the library right away. The chart at this link (provided by RBC Wealth Management) shows what a stock donation worth $10,000 might look like for your tax savings.
Support DPLFF Long-Term:
You can help ensure the long-term sustainability of DPL by naming DPLFF in your will. Planned gifts of all sizes are accepted to support Collection Development, specific programs or wherever it is needed most. Creating a bequest or making DPLFF a beneficiary of your life insurance policy are great long-term options. Please be sure to let us know if you have included us in your estate plan.
You can set up a donor-advised fund, which is like a charitable savings account. It gives you the flexibility to decide how much and when to give. You can make tax deductible donations of cash, securities, or other assets to the fund now and make contributions in the future.
If you would like to make an investment in DPL, we have a monthly giving program. You pick the amount and what time of the month works best for your budget. Your monthly contribution helps sustain us throughout the year.
Please consult with your tax, legal or financial advisor(s) to see how these charitable gift ideas may impact your specific financial situation.