For those who utilize the standard deduction and do not itemize: If you are age 72 or older by December 31, 2021, you’re required to take a portion of your IRA (a Required Minimum Distribution) as taxable income every year. Current tax law allows you to gift up to $100,000 of your RMD directly to charity and exclude that amount from your taxable income. If you advise your IRA administrator or financial advisor to direct your Qualified Charitable Distribution to Redeemer, it reduces the taxable amount of your RMD by the amount of the gift.
For those who itemize: The contribution limit for 2021 is 100% of your adjusted gross income, historically, deductibility of charitable giving has been limited to 60% of AGI. Additionally, a gift of stock allows you to forego capital gains and also deduct the fair market value of the stock on the date of transfer.
These opportunities are generous and effective ways to give to Redeemer.
If you have any questions, contact Redeemer Business Manager John Walsworth at JWalsworth@RedeemerSarasota.org. Thank you for your generosity!