Oregon Jewish Life Dec. 2020 Vol. 9/Issue 4

Page 14

SPECIAL SECTION:

C H A R I TA B L E GIVING

Tips for smooth year-end giving By Julie Diamond IT’S EASY TO LOSE TRACK OF TIME in the

busy weeks of December. And this year, with coronavirus,

we have more on our minds than ever – like how to be safe with our loved ones

and still experience the holiday traditions we cherish. For many of us, supporting the nonprofits we believe in is one of our year-end traditions. If you plan your

year-end charitable giving well, you’ll be able to help those in need, protect your charitable tax deduction and enjoy the holiday season.

TIPS TO MAKE YOUR CHARITABLE GIVING SMOOTH: GIFTS OF CASH/CHECKS

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Mail is already slow due to the pandemic. Add in December holiday cards and packages and it has the potential to be even slower. Checks mailed to nonprofits must be postmarked by Dec. 31, for the donor’s charitable deduction to count in 2020. The date of receipt will be reflected in your gift acknowledgment letter provided by the charitable organization (for gifts over $250). You might consider making your contribution online. Many nonprofits provide this option on their websites. Remember, there is a fee of 2-4% depending on the credit card company. Often, you can cover the fee, so the nonprofit doesn’t lose that amount of your gift. If you plan to donate a large sum, consider a wire transfer or overnight guarantee delivery service. Mailed envelopes must be postmarked by Dec. 31.

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DECEMBER 2020 | OREGON JEWISH LIFE

IRA ROLLOVER GIFT

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Although the required minimum distribution (RMD) is suspended temporarily because of the pandemic, you can still choose to distribute up to $100,000 of your IRA directly to a nonprofit. You must be 70 1/2 years or older and you won’t pay income tax on the transfer (however, there is no charitable deduction). Contact your IRA administer to arrange for the transfer by Nov. 30.

UNIVERSAL DEDUCTION

A $300 universal charitable deduction is now available if you take the standard deduction. This is a temporary change in tax law intended to encourage charitable giving by people who may be reluctant to give due to uncertainty about the economy and the virus.

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Oregon Jewish Life Dec. 2020 Vol. 9/Issue 4 by JewishLifeMagazine - Issuu