Ideas for Giving and Moving Forward in 2021
The Free Methodist Foundation continues to move forward with its important work. In the midst of all that is going on, many of our friends and supporters are looking forward to the future when they can enjoy community with friends and resume their regular activities. In response to the current situation, Congress extended some of the COVID relief tax changes to 2021.
The Free Methodist Foundation has created this page to offer resources to help you with your tax planning and to offer some ideas for you to consider if you are thinking about making a gift in support of our mission in 2021.
1. 2021 Giving Incentives
The CARES Act passed in 2020 included several charitable tax provisions to encourage giving. Congress has extended these provisions for 2021 including:
- A deduction for charitable donors who do not itemize when filing their tax returns. If you do not itemize but make a cash gift to charity, you will be allowed to take a special tax deduction, up to $300 ($600 for joint filers), to reduce your tax liability.
- An increase in the deduction limit up to 100% of a donor's annual income for cash gifts (previously the deduction was capped at 60% of annual income). If you make a gift you will be able to deduct more this year.
2. Donor Advised Funds
If you have a Donor Advised Fund (DAF) and wish to help us this year, you can make a gift from your DAF to support Ministry without affecting your personal financial security.
3. Charitable Bequests
Many of our friends are updating their estate plans. If you would like to support Ministry with a charitable bequest, we can help. Please contact us for a copy of our free estate planning guide. We can provide you with our bequest language and estate planning attorney referral list. Please contact us for assistance with creating and updating your plans.
4. Outright Gifts of Appreciated Assets
Gifts of appreciated assets such as securities or real estate are an excellent way to help ministries. These gifts can provide you with numerous benefits:
- Receive an income tax deduction, based typically on the asset's fair market value
- Avoid federal and state capital gains taxes
- Avoid the Affordable Care Act Medicare-tax
If you are interested in learning more about any of these ideas, please contact us. Please also let us know how we can help you during this time.