Year-end giving 2021
Helpful information from the ECFA
Thank you for the prayers, support, and financial resources you have invested at Joy El. God is using you in amazing ways. Praise the Lord!
While giving to the Lord is our motivation, as we approach the end of 2021, I wanted to be sure you knew that right now is an excellent time to build on your ministry investments in terms of tax benefits. Whether or not you itemize deductions on your annual tax return, there are temporary opportunities in the tax law encouraging you to invest in charitable organizations now.
But those provisions are set to expire on December 31!
This is so significant that the IRS actually issued a special “tax tip” earlier this fall for givers like you.* Here is the gist (in plain English) of the benefits meant to support your giving this year:
- It may not make sense for you to itemize deductions every year — that is the case for many givers. But shouldn’t the tax code give some credit to your gifts? We think so, and thankfully Congress agreed… at least at the start of the pandemic. Right now, you can deduct up to $300 contributed to this ministry during 2021 — $600 if you are a married couple filing a joint return — even if you do not itemize and take the standard deduction.
- If you do itemize deductions, this is for you. Usually, your eligible gifts cannot exceed a specific fraction of your income. But for gifts in 2021, you can generally elect to claim a charitable deduction for cash donations up to 100 percent of your adjusted gross income (consult your tax professional or read the IRS update noted below for limited exceptions).
- If you run a business, there are incentives for you, too. The deduction thresholds for cash and food donations for many businesses have temporarily increased depending on your status as a corporation, sole proprietorship, and so forth. It is definitely a benefit to explore with your accounting team.
Again, these incentives are slated to end this year, so please consider taking advantage of these opportunities before December 31. You may donate online.
Finally, one more idea that is not in the IRS tax tip but is worth considering. You might reduce your tax bill by making a distribution from your IRA to our ministry. This can satisfy the required annual minimum distribution for taxpayers age 70½ or older, while not resulting in taxable income. It’s effectively another way to qualify for a charitable tax benefit — whether you itemize on your taxes or not!
Thank you again for your continued partnership with Joy El.
Follow this link to donate online. Gifts may be sent via US Mail to:
3741 Joy-El Drive
Greencastle, PA 17225
Please call Aaron or Mike at 717-369-4539 to learn more about gifts of mutual funds or stocks.
* See “Expanded tax benefits help individuals and businesses give to charity in 2021”, Sept. 28, 2021, https://www.irs.gov/newsroom/expanded-tax-benefits-help-individuals-and-businesses-give-to-charity-in-2021
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