We are a community of Friends connected by faith, and worship is a big part of what we do together. But Friends meetings and PYM are also responsible for properties, utility bills, staff, and programming that our Quaker community values and relies on. All of this requires financial support.
Here are some tax-wise suggestions on how to provide that support without breaking the bank.
2020 Cares Act Advantages
If you take the standard deduction on your income tax return… you can take a charitable deduction for gifts up to $300 even if you don’t itemize deductions when filing your 2020 taxes. This was enacted to encourage giving when need is greater than ever.
If you itemize deductions … you can deduct cash gifts up to 100% of your adjusted gross income in 2020 (please note this does not apply to gifts of securities/other assets, nor for gifts to private foundations/donor advised funds).
Friends with IRAs
These changes were made to regulations in 2020:
- Required minimum distributions (RMDs) from retirement accounts were suspended for 2020.
- RMDs now begin at age 72.
- A qualified charitable distribution of up to $100,000 from an IRA can still be made at age 70½. A charitable distribution of this kind would not be included as taxable income – and could reduce income for purposes of Medicare premiums, Social Security income taxes, and future RMDs.
As you consider these and other strategies for wise giving, we suggest you consult your financial advisor.
Gifts Of Stock
Many donors choose this way of giving because they hold appreciated stock that will incur capital gains taxes when sold. So, it’s tax-wise to give that stock away to a non-profit and take the tax deduction on the stock value at the time the non-profit receives the shares.
These gifts can be made in any amount.
PYM relies on Friends Fiduciary to process all gifts of stock. Please refer to Friends Fiduciary’s Procedure for Securities Transfer document for helpful instructions. We also ask that you share your intentions with PYM or your meeting when making these gifts so that the organization knows a stock gift is forthcoming.
Donor Advised Funds
Donor Advised Funds (DAFs) are easy ways to “bunch” your charitable deductions. Financial institutions like Friends Fiduciary offer Donor Advised Funds. With one big gift you initiate the fund and take the 2020 deduction.
Later you can decide how to further your philanthropic goals with designated gifts. This works for individuals, couples, or groups of people with charitable intent. Friends Fiduciary’s program allows you to assist both Quaker institutions and non-Quaker 501(c)3 non-profit organizations that are in harmony with the values of Friends. You can learn more about Donor Advised Funds by visiting the Friends Fiduciary website.
Simple Gifts Work Too!
It is always possible to make an online gift to PYM or your meeting at www.pym.org/nurture, or mail a check. PYM’s address is 1515 Cherry Street, Philadelphia, PA 19102. Please note in the memo line that the gift is for the annual fund.
Getting More Information
If you have any questions about giving to PYM or your meeting, or wish to make a gift of stock, please contact Grace Cooke at email@example.com or call 215-241-7115. Learn about other ways to give at www.pym.org/donate.