Additional Opportunities to Support the CMS Foundation

THINKING ABOUT MAKING A GIFT BEFORE THE END OF THE YEAR?

By Pam Irwin, Executive Director, Capital Medical Society Foundation, Inc.

Thank you for your dedicated support. The past year has reminded us how fortunate we are to have you in our family of physicians and donors. Your support has made it possible for us to face the many challenges of 2021. We couldn’t have done it without you.

Thank you.

We wanted to take this time to remind you of some important CARES Act provisions that are scheduled to expire at year’s end. These provisions may affect you— and even make it easier for you to make a gift to the Capital Medical Society Foundation, Inc. They include: may be tax-deductible. Such contributions, though, will REDUCE the tax-free $100,000 QCD limit. For example, if a donor makes a QCD of $10,000 to the Capital Medical Society Foundation in 2021 and also contributes $7,000 to their IRA, the Foundation will receive the full $10,000, but the tax-free portion of the QCD will be reduced to $3,000. The remaining $7,000 will be taxable income to the donor.

These changes notwithstanding, QCDs from IRAs have become a familiar and useful tool for charitable giving. The Capital Medical Society Foundation invites you to consider directing a QCD to it either now at the close of 2021, or in early 2022. Under certain conditions, a QCD at the beginning of the year is preferable to yearend giving. We are happy to meet with you and your professional advisors to discuss your gift and hope you will join your many colleagues who are using QCDs to support the mission of the Capital Medical Society Foundation. The Capital Medical Society Foundation, Inc.'s Federal Tax ID is 59-2104510.

We are so grateful for your generosity, which touches— and changes—so many lives. Please contact me at pirwin@capmed.org or 850-559-8611 to discuss how your gift can help further our mission.

With gratitude,

Pam Irwin Executive Director Capital Medical Society Foundation, Inc.

“As a CMS Foundation board member and donor, I use Qualified Charitable Distributions (QCDs) from my Individual Retirement Account (IRA) as an effective way to accomplish my philanthropic goals and objectives. Further, QCDs are a very incometax-beneficial giving strategy that can really trim your tax bill. That having been said, it is imperative for those who contemplate donations via QCDs to consult their professional advisors to clarify all pertinent federal law, rules and regulations relative to QCDs and the associated Required Minimum Distributions (RMDs).” - Paula S. Fortunas, M.A.

• An expanded charitable giving incentive that allows taxpayers who take the standard deduction to

make up to $300 in charitable cash contributions for single filers ($600 for married couples) to

qualified charities like ours (but not to supporting organizations or donor advised funds) this year.

• For those who do itemize their deductions, the law

allows for cash contributions to qualified charities

such as ours to be deducted up to 100% of your adjusted gross income for the 2021 calendar year.

Qualified Charitable Distributions (QCDs) and Required Minimum Distributions (RMDs) from Individual Retirement Accounts (IRAs)

RMDs from IRAs were suspended for 2020, due to the pandemic. The requirement has been reinstated for 2021. The December 2019, Setting Every Community

Up for Retirement Enhancement (SECURE) Act

modified certain aspects of the way IRAs work. In prior years, individuals who had attained the age of 70 1/2 and older could transfer tax free up to $100,000 from their IRAs, in any given year, to a qualified public charity, such as the Capital Medical Society Foundation. The QCD could be applied, in whole or in part, toward the donor's annual RMD. Now, the SECURE Act has changed the age when individuals must start taking RMDs from age 70 1/2 to age 72. Individuals can still make QCDs starting at age 70 1/2 even if they are not taking RMDs at that time. However, that is affected by another change the SECURE Act made relative to IRA contributions and the QCD. Under prior law, those age 70 1/2 and older could not make new contributions to an IRA. Now, IRA owners at any age may make contributions to their accounts, the amounts of which