Now is the season of giving and a great time to help those in need.
When you make a donation by December 31 to the Community Foundation or to your favorite charitable nonprofit, you’re making a difference in our community. Below are just a few ways to make the most of your year-end giving.
Be sure to talk to your tax preparer, CPA, attorney, or other professional advisor to understand the impact on your taxes, and in some cases, the impact on your estate plan.
CFFK’s 2020 Year-End Giving Deadlines
To make a year-end gift…
Checks must be mailed or hand-delivered on or before Thursday, December 31 to 300 Southard Street, Suite 201, Key West, FL 33040. (For hand-delivery, our office is upstairs, second floor – please note the office building closes at 5 p.m.)
Credit card and PayPal gifts must be made before midnight – here or via phone – (305) 292-1502 – up until 5 p.m. on Thursday, December 31.
Gifts of stock must be received by CFFK on or before Thursday, December 31, so please plan ahead to initiate the transfer in time!
Stock transfer insformation:
TD Ameritrade Clearing, Inc.
FBO Community Foundation of the Florida Keys
Account # 931030073
PO Box 2226
Omaha, NE 68103-2226
200 S 108th Ave.
Omaha, NE 68154-2631
(Please contact us with any questions. See instructions on making a variety of gifts here.)
Real estate and partnerships assets must have title transferred or assigned on or before Thursday, December 31.
To make a year-end grant from your fund…
Year-End Donation and Tax Savings Ideas
CARES Act Changes
There are a number of new benefits this year due to the CARES Act. In 2020, those who don’t itemize their deductions (take the standard deduction) can still claim a $300 charitable deduction. Those who do itemize can give up to 100% of their adjusted gross income. The CARES Act also waives all required minimum distributions from retirement plans for most donors.
Bundling or Bunching
Some donors opt to bundle, bunch, or “pre-fund” their giving. By bundling or “bunching” charitable giving, you can use a Donor Advised Fund (easily set up at CFFK) to condense several years’ worth of giving into one year and gain the maximum tax benefits available now. You claim a deduction for the donations to your fund in the first year, even though distributions from the fund are made in future years.
Stocks and Bonds
Consider giving shares of appreciated stock, bonds, or mutual funds. Selling stock will incur capital gains on the appreciation, but if you gift stock, you will receive a charitable deduction for the current market value of the stock—just as you would with a cash gift. Such gifts may be deductible up to 30% of your adjusted gross income and you can carry the deduction forward for up to an additional five years.
Real Estate and Other Non-Cash Assets
A gift of real estate is also a good options to benefit the nonprofit with a direct gift and benefit the donor with an income tax deduction and capital gains tax savings. Consider gems, fine art, or any appreciated asset as a potential gift.
Retirement Plans and Life Insurance
If you’re receiving taxable income from retirement plan assets or life insurance policies, there are a number of tax-advantaged ways to make these assets work for you and the causes you support. The Charitable IRA Rollover Act, for example, allows donors age 70 ½ or older to donate up to $100,000 from their IRA. Gifts made from your IRA are not reportable as taxable income and qualify toward your required minimum distribution (RMD), which can lower your income and taxes. NOTE: Though the CARES Act has waived required minimum distributions for 2020, an IRA distribution is still a great way to make a meaningful gift.
Please check with your CPA, attorney, or other professional advisor for more giving options and to understand the impact on your taxes.
Contact Jennifer (305-292-1502) to discuss setting up a Fund, making a legacy gift, or other giving options at CFFK.