We will persevere.
During this time of great uncertainty worldwide, we want to pause and thank you for your commitment to our students and the University of Nevada, Reno community. We are humbled and proud of our partnership with you. Together we are stronger.As you consider your options for supporting the University of Nevada, Reno and other worthy causes, keep in mind that federal legislation passed in 2020 and extended through 2021 made changes which impact charitable giving. As always, please consult your tax advisor/attorney for advice on your specific situation, but below is a summary of how the changes affect charitable giving in 2021:
- Extension of universal charitable tax deduction for non-itemizers In 2020, non-itemizers were allowed deductions of up to $300 for charitable gifts. This benefit has been extended through 2021 and expanded from $300 per return to $300 per single filer or $600 for those married and filing jointly. In other words, non-itemizers who make cash gifts during 2021 get a tax break in addition to the standard deduction. This tax incentive is available for cash gifts to qualified charities (but not to supporting organizations or donor advised funds).
- Extension of 100% charitable deduction for cash contributions The usual deduction limit for cash gifts to public charities is 60% of adjusted gross income (AGI). For 2020, and now 2021, gifts of cash to charity (excluding donor advised funds and supporting organizations) are deductible to 100% of AGI. Any excess deductions available can be carried over to the next five years. Gifts made to a donor advised fund or a supporting organization do not qualify for the increased deduction.
- What about Required Minimum Distributions? Federal legislation waived the required minimum distribution (RMD) for IRA and other qualified retirement plan owners for the year 2020. However, the RMD waiver was not extended for 2021. In 2021, IRA owners age 72 and older are required to resume taking their RMD. Fortunately, the law still allows IRA owners age 70½ and older to make a charitable rollover gift of up to $105,000 from their IRA to public charities and to count the gift toward their RMD. A charitable rollover gift can satisfy your RMD for the year and reduce your taxable income, even if you do not itemize deductions.
Thank you for your partnership in our mission
Thank you for being part of the Wolf Pack - we are honored to have your support, and want you to know, you are in our thoughts.
If you have questions or want to know more about what we are doing during these trying times, please feel free to contact us.