2021 Year-End Charitable Giving Updates

As you consider your year-end philanthropy, we want to make you aware of changes to the tax law under the SECURE and CARES Acts as well as charitable giving strategies that have the potential to reduce your tax liability in 2021.

“Above-the-Line” Deduction for Cash Gifts in 2021
The CARES Act enables a taxpayer who takes the standard deduction to still benefit from his or her charitable gifts. A $300 “above-the-line” deduction is now available for gifts of cash by a non-itemizer, but the gift may not be to a donor advised fund or supporting organization.

Gifts of Long-Term Appreciated Securities
Giving a gift of long-term appreciated securities is in many cases more tax advantageous than giving cash. This is because capital gains taxes can be avoided on gifts of long-term appreciated securities. This can be especially useful in optimizing your tax benefits if you are not itemizing in a given year. Complete instructions for making gifts of securities are available here.

100% Charitable Deduction Limit
For 2021, the CARES Act increases the deduction limit from 60% to 100% of adjusted gross income (AGI) for gifts of cash to charity (excluding donor advised funds and supporting organizations). The gift may be for any charitable purpose.

To ensure your gift to TVMF is properly recorded for the calendar year 2021, please consider these year-end deadlines:

  • Gifts of checks/money orders sent to TVMF must be postmarked no later than Friday, December 31.
  • Credit card gifts at https://www.tvmf.org/ways-to-give/donate/ must be made before 12 midnight Friday, December 31.
  • Gifts of stocks must be received in TVMF accounts by Friday, December 31.