2021 Charitable Giving Tax Benefit Changes
The following information has been compiled from the Oklahoma Disciples Foundation for informational purposes only. It is recommended you check with your accountant or a tax advisor for details regarding this new tax benefit and your charitable gifts.
Expanded tax benefits have been enacted for individuals and businesses through the Taxpayer Certainty and Disaster Tax Relief Act of 2020, last December.
In 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) expanded the deductibility of charitable contributions in 2020 allowing up to $300 for cash contributions to charity in 2020 to taxpayers taking the standard deduction.
2021 Charitable Contribution Deductions
In 2021, the charitable contribution deductions is $300 for individual taxpayers taking a standard deduction and married couples filing joint returns can deduct charitable (cash) gifts up to $600.
The requirements for deductibility:
- Donations must be in cash (or by check, credit or debit card). This does not apply to contributions of property, marketable securities, real property, or otherwise.
- The donation must be to a public charity. Donations to donor advised funds or most private foundations will not qualify.
- Cash contributions carried forward from prior years do not qualify.
Charitable IRA Rollovers
Eligible taxpayers (those over 70½ years of age) have a beneficial way to support their favorite, qualified charities, including your congregation and the Regional Church, through the Charitable IRA Rollover, which has been in effect permanently since 2015. These charitable gifts can replace the required minimum distributions (RMD) that are required annually from your Individual Retirement Account (IRA).
If you are an IRA owner over the age of 70½, you can make charitable gifts directly from your IRA totaling up to $100,000 per year. These contributions will not be included in your adjusted taxable gross income for that year. Your IRA manager will be able to provide you with the paperwork.
If you are interested in making a gift to the Christian Church (Disciples of Christ) in Oklahoma through an IRA Charitable Rollover, please contact the Regional Office at firstname.lastname@example.org or 405.528.3577.
For individual taxpayers who itemize deductions: Individual taxpayers who itemize their deductions may now deduct certain charitable contributions up to 100% of the taxpayer’s adjusted gross income (“AGI”). Prior to the CARES Act, taxpayers were limited to deducting certain charitable contributions up to 60% of the taxpayer’s adjusted gross income.
The requirements for deductibility up to 100% of AGI:
- Donations must be in cash (or by check, credit or debit card).
- Donations must be made to a public charity (not to a donor advised fund or most private foundations).
- Donations must be made during 2021.
If a donor gives more than 100% of their adjusted gross income, the donor may carry forward excess deductions for up to five subsequent tax years; although this deductibility may be set to expire after 2021.
Additionally, corporate limits for charitable cash deductions has increased from 10% to 25% of taxable income. Businesses donating food inventory in 2021 may also qualify for increased deduction limits.
Have you made a charitable gift this year?
You can easily make online gifts to the Region here or to the Oklahoma Disciples Foundation on their website to one of the funds supporting the ministries and missions of the church. Click this link “Together We Touch Lives” to see a list of endowment funds that support church ministry, missions and grant funding. Gifts to Disciple Club, Endowments or the Grants Program may be made in honor or memory of an individual. If requested, the Foundation will send a gift acknowledgement on your behalf. For information call (405) 525-6530