Updated- February 2021
The new charitable deduction rules for individuals and corporations, established by the CARES Act in 2020, have been extended into 2021. The ability to take an above-the-line deduction for charitable donations allows all Americans to support nonprofits that have worked tirelessly to address the impacts of COVID – while also getting a personal tax benefit. Nonprofit organizations like Norwescap have gone above and beyond to help thousands of individuals and families most impacted by the ongoing health crisis – and our generous donors make this possible!
- If you do not itemize your taxes, you can still deduct up to $300 ($600 for married couples filing jointly) for donations made to 501(c)(3) public charities like Norwescap.
- If you do itemize your taxes, you can now deduct up to 100% of your Adjusted Gross Income (AGI) in contributions to 501(c)(3) charities (up from the previous limit of 60%).
- If you are donating through a corporation, corporations can deduct up to 25% of their taxable income (up from the previous limit of 10%).
Other Ways to Give
- Opening a Donor Advised Fund (DAF) allows you to set aside charitable dollars to donate later, while maximizing your tax deduction now. Already have a DAF? This is a great time to use the funds you’ve already set aside to support the work of your favorite nonprofit!
- If you are 70 ½ or older and you have an IRA, you can donate up to $100,000 to a 501(c)(3) public charity through a Qualified Charitable Distribution (QCD), which is not taxable and which will reduce the taxable income remaining in your IRA.
- By making a stock donation, you can deduct the gift from your taxes based on the value of the shares at the time of donation, and avoid paying capital gains taxes on the donated amount. For information on how to make a stock donation to Norwescap, call Heather Thompson at 908-454-7000 x1106.
- Consider naming Norwescap (or your favorite 501(c)(3) in your will/estate plans. Your legacy gift will help to ensure that the impact of your generosity is felt for years to come!
Talk to your financial advisor about how you can maximize your tax deductions – and make a real difference in your community – by supporting your favorite nonprofit organization.
Contact Heather Thompson, our Chief Development Officer, at 908-454-7000 x1106 or firstname.lastname@example.org to learn more and to make your gift today!