Ideas for Giving and Moving Forward in 2022

One of the outcomes of 2020 was an affirmation of the importance of the work we do at Plymouth Place. In the midst of all that is going on, many of our friends and supporters are looking for meaningful ways to make an impact. In response to the current situation, Congress recently enacted several tax law changes. Plymouth Place 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 during this time:

1. CARES ACT

The CARES Act passed in 2020 included several charitable tax provisions to encourage giving. Congress has extended these provisions for 2021. These include:

• A new 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).

2. Gift of Stock

Now is a great time to consider a gift of stock to Plymouth Place. Donors not only receive an immediate income tax deduction, but they also avoid capital gains on the appreciated asset, while impacting Plymouth Place in a meaningful way. For questions related to a gift of stock, contact Paddy Homan, Senior Director of Philanthropy, at 708.557.6678 or [email protected].

3. Donor Advised Funds

If you have a Donor Advised Fund (DAF) and wish to support us this year, you can make a gift from your DAF to contribute to our work without affecting your personal financial security.

4. Charitable Gift Annuities

If you are concerned about your financial security given the ups and downs of the stock market, you may want to consider making a gift to fund a charitable gift annuity. You might be surprised by the benefits. You can exchange your low-performing stock, CDs or cash for guaranteed, lifetime fixed payments. If you make a gift of an appreciated asset, you will not have to pay capital gains when you fund the annuity. You may also benefit from a tax deduction this year and a portion of your payments could be tax-free.

5. SECURE Act

In December 2019, Congress passed the SECURE Act, limiting stretch payments to IRA beneficiaries to 10 years. If you planned to benefit your children with your IRA, your heirs will now pay higher taxes on the inheritance they receive from you. When you revisit your estate plan, consider funding a testamentary charitable remainder unitrust with your IRA balance. This plan can provide lifetime payments to your heirs and spread out the taxes on their inheritance.

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.