TAX BENEFITS OF CHARITABLE GIVING
IMPORTANT 2022 UPDATES SPOKANE COUNTY UNITED WAY
With a charitable tax deduction, you can donate to a good cause and cut your tax bill at the same time. For many individuals and corporations, the CARES Act, which was signed into law to help American workers and businesses mitigate the devastating economic effects of the coronavirus outbreak, allowed for a temporary expansion of the charitable deduction for individuals, couples, and corporations. That provision expired at the end of 2021.
Additionally, the CARES Act provided a temporary suspension of the Required Minimum Distributions (RMD) from most retirement plans for 2020 but was not extended into 2021. With both provisions now expired, it is important to know how you can still benefit from supporting the causes and social programs you care about. And, like most tax laws, these items may seem simple however, you should consult with a tax professional to properly incorporate them into your short and long-term tax planning.
BEQUESTS AND CHARITABLE GIFTS IN WILLS
SPOKANE COUNTY UNITED WAY
Everyone wants to have a life with meaning. Part of that meaningful life is the ability to live on in the memory of family and friends. A good estate plan can indeed create a legacy for family and charity that gives added meaning to the causes and community that are important in your life.
Donor Advised Funds
Many families find that a Donor Advised Fund (DAF) is a simple and efficient way to help charities that they love. By establishing such a fund, you can time the gifts you make (for investment or tax reasons) and you can select the charities you wish to benefit from your gifts. You receive the income or estate tax deduction, and the opportunity is there to make distribution decisions later.
Many families may use a Donor Advised Fund as an estate beneficiary so that they can allow their children or friends to continue supervising the gifts from their fund for years to come. Parents appreciate the way that their DAF encourages children to be involved in philanthropy.