Contributions

IMPORTANT REMINDERS CONCERNING TAX-WISE OPPORTUNITIES FOR GIVING TO HOLY LOVE’S MINISTRY

CARES Act allows deductibility of up to $300 in charitable contributions

even if taking the standard deduction

This may be a great time to make a contribution before yearend because you can take a deduction for contributions in 2020 even if you do not itemize on your income tax return.

Typically, you can deduct charitable donations only if you itemize deductions.  However, under the pandemic relief CARESAct, passed last March, individual taxpayers can take a deduction of up to $300 for cash donations made this year when filing next spring even if they take the standard deduction. Even better, the $300 deduction is taken “above the line” meaning the contribution reduces your adjusted gross income by up to $300! Just remember, to qualify the contribution must be made in cash, via credit card, or via check.

Thanks for your support of Holy Love’s ministry.

Regarding Qualified Charitable Giving (QCD’s)

Did you know if you are over the age of 70 ½ and receiving Required Minimum Distributions (RMDs) you can instruct your IRA Trustee to make a direct contribution on your behalf to Holy Love and you can remove the amount contributed from 2020 taxable income and still take the standard deduction?

A QCD, is a direct transfer of as much as $100,000 by the custodian of your traditional IRA to a qualified organization, such as Holy Love. Done properly, funds contributed in this manner count toward the amount necessary to satisfy annual RMD distribution requirements AND are excluded from taxable income even if you take the standard deduction.

You must be over the age of 70 ½ when the custodian transfers are made and QCD checks cannot be payable first to you with the intent being that you will turn around and write a contribution check. In order to qualify as a QCD, all such contributions must be made prior to December 31stby the IRA custodian with checks being payable directly to Holy Love Lutheran Church. After year-end, our Financial Secretary will promptly acknowledge receipt of all QCDs for tax reporting purposes.

If this QCD approach to giving is of interest to you, please discuss it with your tax preparer. Should you decide contribute in this manner, either once at yearend or regularly throughout the coming year, contact your IRA custodian in order to determine the custodian’s procedure to follow.

Your Finance Team