Add a Little Magic to Your Wallet with Your Year-End Gift

2021 Charitable Tax Deductions for Non-Itemizers

  • Give $300 per person – that’s $600 per married couple - to charity (not a donor-advised fund (DAF) or Foundation) and receive an extra tax deduction. This extra special deduction will not be available next year

Make Your Taxes Disappear When You Offset 100% of Your Income with Charitable Deductions

  • This opportunity expires at the end of 2021
  • This is cash only
  • This works only with public charities not DAF’s
  • For an encore – consider leveraging your 100% tax deduction into a gift that can provide income back to you, such as a charitable annuity

Use the 100% Tax Annual Gross Income (AGI) Tax Deduction To Create a  Tax Free Roth Conversion on High Value IRA’s

  • Make a large withdrawal from your taxable IRA
    • This creates income
  • Open a ROTH IRA with other savings
    • This creates tax free growth
  • Offset taxes on realized income from your IRA withdrawal by giving a charitable giftUp to 100% of AGI
    • Helpful for those in a multi-year pledge with tax heavy retirement accounts

Other Year end Tips

  • Don’t forget to use DAF distributions and keep your cash in your pocket
  • Bundle two years of giving to take you over the standard deduction limit this year
  • Are you over 70 ½ ? Your IRA required minimum distribution (RMD) is the most tax efficient way to give
  • Do you have appreciated stocks? Using these to give will save you taxes and allow for a gift that costs you less while making a larger impact

This information is not intended as tax, legal or financial advice. Gift results may vary. Consult your personal financial advisor for information specific to your situation.

Questions? Please contact Nicola Lawrence, Director of Legacy and Gift Planning at 469-744-1986.

Giving a year-end gift is just one of the ways you can Bring the Magic to our patients this holiday season. Explore our ways to give page as we stand strong, provide hope and raise funds to fight childhood illnesses and injuries. Together, we can make a real difference for patients at Children’s Health.