Together, we have played a key role in the discovery and availability of nearly every major T1D advance and we can’t stop now. Future breakthroughs start with us.
We know many of you will soon contemplate your year-end giving and will want to make the most of your charitable dollars. Fortunately, the US tax code fosters a tradition of generosity making the US the most philanthropic nation. Here are a few tax-wise giving strategies if you’re considering a year-end contribution to Breakthrough T1D.
Cash
Cash is still the most popular way to make a charitable gift and could provide important tax benefits. If you itemize your deductions in 2021, you can elect to deduct cash contributions up to 100 percent of your AGI (formerly 60 percent prior to the passage of the CARES Act in 2020).
The CARES Act also includes a charitable giving incentive providing non-itemizers with an “above the line” deduction of $300 and extended in 2021 to $600 for those married and filing jointly, making it easier to support your favorite causes. This applies to cash contributions made in 2021 and can be claimed on 2021 Form 1040.
This incentive doesn’t apply to contributions to donor advised funds, private non-operating foundations, or section 509(a)(3) supporting organizations. All other contributions for which a deduction is allowable under section 170 are covered.
Stocks, Bonds, Mutual Funds
Gifts of appreciated securities can be one of the most tax-wise ways of giving. If you have owned your securities for more than one year, you may deduct the full fair market as a charitable contribution, while bypassing capital gains taxes.
Real Estate
Gifts of appreciated real estate are like gifts of appreciated securities. Assuming you have owned the property for more than one year, you may deduct the fair market value as a charitable contribution while bypassing all capital gains taxes.
Charitable IRA Rollover
If you’re 70½ or older, you can contribute up to $100,000 annually from your IRA without generating taxable income. This is an ideal way of making a tax-wise gift while satisfying your required minimum distribution (RMD). Charitable IRA Rollovers are simple to make and are a tax-wise giving strategy. A call to your plan administrator is all that is required to get started.
Donor Advised Fund
Giving through a donor advised fund (DAF) has become the fastest growing source of charitable gifts over the last two decades. You receive an immediate charitable tax deduction for each contribution you make to your DAF, provided you itemize your deductions. You can then contribute to Breakthrough T1D and other charities at any time you choose, from one single account, simplifying your giving.
2021 is quickly coming to a close. Please consider your long-term charitable goals. Including Breakthrough T1D in your estate plan is an important way to ensure research continues until we realize our vision of a world without T1D.
We appreciate your consideration and thank you for your support.
To learn more about how you can support T1D research and benefit financially, please call us toll-free at 877-533-4483. Our services are free and there’s never any obligation.
