As 2022 draws to a close, many of our supporters are planning for their year-end charitable contributions.
I wanted to make our SCI Community aware of some incentives that can help you maximize your gift. Take a look at these giving options as you consider supporting U2FP's important work.
New Charitable Deduction Limits (changes since 2021)
Personal 2022 charitable deduction limits for gifts to public charities, including donor advised funds, are 30% of Adjusted gross Income (AGI) for contributions of non-cash asset, if the assets were held for more than 1 year. The limit for cash donations is 60% of AGI. Excess donations may be carried over for 5 years.
Make a Gift from your IRA
Making a QCD (Qualified Charitable Deduction) this year allows itemizers and non-itemizers alike to direct up to $100,000 from their IRA to charities in a tax efficient manner. This will satisfy all or part of the Required Minimum Distribution RMD) for individuals 70 ½ or older and is not considered income to the donor.
If you donate your stock directly to a charity, there's no capital gains tax to pay. Plus, you are still eligible to deduct the full fair-market value of the asset you donated from your income taxes, up to the overall amount allowed by the IRS.
Consider using a Donor-Advised Fund, making tax-deductible contributions before year-end, and deciding on grant recommendation next year.
Notable Changes from 2021
Unfortunately, the $300 charitable deduction for non-itemizing taxpayers was not extended for tax year 2022.
You can find more charitable giving strategies here: 8 Year-End Charitable Giving Strategies: How to give more while saving more on 2022 taxes
Note: U2FP is not in the business of providing professional legal or financial advice, and donors should consult with their own advisors to ascertain how these opportunities may complement their own personal, philanthropic and tax planning objectives.
(Sources: Make-A-Wish Foundation, Bloomerang, Fidelity Charitable)