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Three Tax Advantaged Ways to Support Temple Sinai

How the CARES Act Makes it Easier to Donate 

Temple Sinai has always been sustained by the generosity of our members, and your generosity is more important than ever. When planning your year-end giving, you might want to consider changes in the tax code arising out of the COVID-19 pandemic CARES Act legislation. Below you’ll find information about how these changes to tax law might affect your year-end donations to Temple Sinai.

An Easy Way to Donate

Gifts of appreciated stocks, bonds, real estate, tangible assets — or just a check — are the easiest and most direct way to
support Temple Sinai. These gifts often result in an immediate tax deduction and a gift of appreciated property can yield additional tax savings.

“Bunching Donations” 

If you do not have enough deductions to itemize, you can group your donations in certain years to maximize tax benefits for other tax-advantaged strategies.

THE CARES ACT

To encourage charitable giving during the pandemic the CARES Act suspended the limits on charitable contributions, by allowing deduction of up to 100% of your Adjusted Gross Income (AGI). The normal limitations are 50%, 30% or 20% of a taxpayer payer’s AGI, depending upon how the IRS classifies the organization receiving the donation. This deduction only applies to taxpayers who can itemize deductions. 

While not a huge tax break, the CARES Act also authorized an ‘above-the-line’ charitable deduction of up to $300 for charitable contributions. The tax law changes enacted for the 2018 tax year increased the standard deduction, limiting the number of taxpayers who can itemize deductions each year. This means that all taxpayers who are able to itemize deductions can deduct up to $300 in charitable donations. 

Qualified Charitable Distributions (QCDs)

If you are 70 ½ or older, Qualified Charitable Distributions (QCDs) are a great way to support Temple Sinai during your lifetime. QCD’s are designed to allow you to take a portion of your IRA “required minimum distribution” (RMD -- the amount you must start taking from any of your IRAs once you reach the age of 70 ½ , even if you have not yet retired) and contribute some or all of it to charity. A QCD is a direct transfer from your IRA to a qualified charity, totally free of tax. QCDs count toward your annual RMD if certain rules are met. A QCD is often better for the donor tax-wise than taking the required distribution and making donations separately.  While the CARES Act waives RMDs for 2020, you might want to think about this kind of gift in 2021.

The CARES Act waives required minimum distributions for 2020 from retirement accounts.  

Please be in touch if a conversation would be useful to you. Executive Director Terrie Goren is standing by to answer any questions you may have.

Temple Sinai’s Tax ID number is: 94-1156845

This information is intended to be educational and is not intended as legal or financial advice. Please check with your financial and legal advisors on whether any of the tax-advantaged ways to benefit Temple Sinai apply to you.

Sat, December 5 2020 19 Kislev 5781