DONATE & SAVE IN TAXES TOO!
Contributions must be made by December 31st
For 2020 only, you may deduct up to $300 per tax return, even if you cannot itemize. Just make sure to save the letters of acknowledgment from the charities. Cash donations and political contributions are not deductible. This is an “above-the-line” donation that reduces your taxable income. For larger donations, you may donate to your beloved charities, such as Bethany, by using a “qualified charitable contribution,” or QCD you must be at least 70 ½ and have an IRA.
QCDs can save you taxes (and maybe Medicare premiums) while helping those charities as well. The contribution must go directly from your IRA plan sponsor (such as Merrill Lynch, Schwab, T Rowe Price, etc.) to the charity. The check cannot be written out to you. By taking a QCD, you do not pay any taxes on that money because it is not included in your adjusted gross income. (Please let your tax accountant know that the distribution was a QCD.) You may contribute up to $100,000 each year via a qualified charitable donation from your IRA regardless of whether this amount exceeds your required minimum distribution.
Would you consider using your distribution, or just a portion, to donate to Bethany’s Endowment Fund? The Endowment Fund is designed to help fund various ministries that aren’t fully funded through Bethany’s operating budget. Only the earnings on the investments in the fund are used to fund these programs, so your Endowment gift will continue to serve Bethany for generations.
While you are thinking about your IRA, you may want to note that naming Bethany as a beneficiary of your IRA is easier and cheaper than modifying your will to make a bequest.
If you have questions, please talk with a member of the Endowment Fund.