With Dec. 31 right around the corner, another calendar year is drawing to a close. Traditionally, the final quarter is the most generous time of the year for charitable giving. Many charitable organizations receive between one fifth and one quarter of their yearly gifts in December alone!
In addition to your other fundraising activities, you may wish to provide your donors with information about your mission and the importance of gifts, especially in times like these. These special appeals may be spread out over the final quarter and include a variety of contacts, including personal visits (when practical), virtual visits via Zoom or video conferences, personal phone calls and text messages, as well as traditional direct mail, online appeals, mobile outreach and special events (or nonevents).
This year, you will want to inform your donors about how the CARES Act and the SECURE Act continue to impact their charitable giving in 2021 with quick updates such as:
- Gifts of cash have special benefits again this year. For example, a bonus deduction of up to $300 individuals/$600 couples is available for cash gifts to public charities, offering savings for taxpayers who don’t itemize. Another tax benefit available this year is the usual limit on deductions for cash charitable gifts (up to 60% of AGI) is suspended, meaning taxpayers are allowed to claim 100% deductions on their 2021 tax returns.
- Last year, the SECURE Act permanently increased the age for required minimum distributions from retirement accounts from 70½ to 72.
- Also, the CARES Act waived required minimum distribution for 2020.There is no longer a required minimum distribution waiver for 2021; anyone age 72 or older as of Dec. 31, 2021, must take their required minimum distribution by year-end to avoid the 50% penalty―unless this is their first required minimum distribution, in which case they have until April 1, 2022.
Sharpe Group has a variety of resources available to help you communicate these and other advantageous ways to give at year-end, including donor data enhancement services and digital and print communication materials to assist with special targeted appeals or campaigns for larger gifts such as stocks, cryptocurrency and qualified charitable distributions from retirement accounts. For more information, download our complimentary Year-End Fundraising Toolkit or contact us at 800.342.2375 or info@SHARPEnet.com.
By Kristin Croone, JD, Sharpe Group Senior Consultant
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