End Your Year on a High Note
For many of us, the end of the year means celebrating the holidays, reflecting on the months past, and showing gratitude for the people and places that make life better. It also marks the end of the fiscal year, a critical time for ensuring that your short- and long-term plans align with your financial and personal goals.
To help you make the most of your thoughtful giving to Memorial Sloan Kettering, here are a few things to consider as you wind down 2021:
This is your last chance to maximize your charitable deduction.
Tax time is around the corner, and the extended CARES Act provisions are scheduled to expire on December 31. To take advantage of these tax savings, consult your advisor to ensure that you receive the maximum benefit this year and also begin planning for 2022.
The CARES Act includes:
- An expansion of the universal charitable deduction for cash gifts. The new deduction is $300 for single filers and $600 for married couples filing jointly. This is available to taxpayers who take the standard deduction. This tax incentive is available for cash gifts to qualified charities (but not to supporting organizations or donor-advised funds).
- An extension of the cap on deductions for cash contributions. The CARES Act lifted the cap on annual contributions for those who itemize, increasing it from 60% to 100% of adjusted gross income. Any excess contributions available can be carried over to the next five years. (For corporations, the law raised the annual limit from 10% to 25% of taxable income.)
Time is running out to use your IRA to make a difference this year.
If you are 70½ or older, it can be advantageous to make your last gift of the year using your IRA. This is because you can make a tax-free transfer of any amount up to $100,000 per year to MSK. If you are 72 or older, then you likely have a required minimum distribution (RMD) that you must take from your IRA each year. To avoid paying federal income taxes on your RMD, you can direct it to MSK to fuel life-changing research and care. But you must act quickly, as the transfer must be completed before year-end to count for 2021.
While you are in contact with your IRA account holder, consider reviewing the beneficiaries you have named for your account. You might also think about updating them to include MSK. Many of our supporters find giving through a beneficiary designation to be an easy, convenient way to create their MSK legacy of advancing tomorrow’s most promising cancer research.
Giving high value appreciated stock can offer added benefits.
When you give appreciated stock to fuel our important mission, you can 1) avoid paying capital gains taxes on the increase in value from when you purchased it and 2) receive a charitable deduction for the fair market value on the date it is sold. During times when the market is fluctuating, or when you anticipate a decrease in the stock’s value, it can be especially helpful to give in this way so that you receive the highest possible deduction.
We Can Help
To learn more about ways to enhance your year-end giving, or to learn more about establishing an enduring legacy with MSK through a gift in your will or other estate plans, contact the Office of Planned Giving at 800-688-1827 or email@example.com.