Partial above the Line Charitable Deduction for Individual Donors
Provides a maximum deduction of $300 for charitable contributions for taxpayers that elect not to itemize their deductions on their tax return. The tax incentive applies to cash contributions only and does not apply to contributions to a supporting organization, a Donor Advised Fund or a carryover contribution. It is effective for contributions made in calendar year 2021.
Suspension of AGI Limits for Individual and Corporate Donors
The CARES Act replaces the 60% of AGI charitable contribution limit with a 100% of AGI limit for 2021. This means that you can get a charitable contribution deduction for the full amount of your Adjusted Gross Income. Charitable contributions in excess of this amount can be carried forward for five years subject to the 60% of AGI limit in those years. The higher 100% of AGI limit applies to contributions made directly to charitable organizations, not to contributions to donor advised funds, supporting organizations or private foundations.
Consider donating your required minimum distribution (RMD) from an individual retirement account (IRA)
Donors continue to take advantage of the Charitable IRA Rollover in which they can contribute up to $100,000 directly from their IRA account to Placer Community Foundation, tax-free.
Gifts to a donor advised fund (DAF) do not qualify for the above-the-line deduction, increased annual limits or the Charitable IRA Rollover. In this case our donors are electing to make contributions to PCF’s Community Needs Fund or into a personalized, Designated Fund. With the designated fund, the donor stipulates the nonprofits they’d like to support and PCF makes grants to them annually. The grants are made in the donor’s name and they are relieved from having to collect gift receipts from the different charities.
For gifts to a Donor Advised Fund appreciated stock remains an optimal choice since they are deductible up to 30% of their AGI.
It’s our pleasure to help you with your 2021 year-end giving. Please review these key dates and deadlines, and let us know if we can assist you! Email our Philanthropic Services Manager Jessica Hubbard at jhubbard@placercf.org or call 530-885-4920.
Make an Impact
Make a tax-deductible donation to an existing fund at Placer Community Foundation. You can be assured that your gift will make a difference in your community today.