In the years since the Tax Cuts and Jobs Act of 2017 doubled the standard deduction, only a small percentage of taxpayers continue to itemize. What hasn’t diminished is Americans’ desire to support the causes and charities they believe in and that hold a special place in their hearts.
As you are discussing gift options with your planned giving donors, consider highlighting two that offer tax benefits whether they itemize or not:
Qualified charitable distributions from IRAs
Taxpayers who are age 70½ or older are required to take annual minimum distributions from their IRAs. These withdrawals come with income tax. Many of your donors of this age may wish, instead, to make a direct distribution to your organization (up to $108,000 this year), reducing the amount they would be taxed.
Gifts of appreciated stock
Even those who don’t itemize may benefit from donating appreciated stock instead of cash. For example, someone who normally gives $10,000 each year could contribute shares of stock worth the same amount while not having to pay capital gains tax that would be owed if the shares were sold. â–