2021 Year-End Planning: Tax Benefits from Charitable Gifts
Your 2021 philanthropy can save money in taxes. Consider these time-sensitive opportunities when mapping out your year-end contributions.
Special Tax Savings for Cash Gifts are Set to Expire
In 2021, cash gifts made to qualified charities can be used to offset up to 100% of your adjusted gross income. In 2022, the deductibility of cash gifts will be limited to only 60% of your adjusted gross income. That means you can save more in taxes if you make a cash gift to Greenwich Academy on or before December 31, 2021.
IRA Required Minimum Distributions are Back
After being waived for 2020, required minimum withdrawals (or RMDs) from your IRA are again in force for 2021 for individuals ages 72 and older. If you wish to support Greenwich Academy with this RMD income, you can donate it as a qualified charitable distribution. This will avoid your IRA generating taxable income for 2021.
Timing Your Gifts
If you mail a check, it must be dated and postmarked by the U.S. Postal Service on or before December 31, 2021, to qualify for a tax deduction this year. If you use a credit card, the gift is considered made on the date of the charge, regardless of when you pay your credit card bill.
More information is available online.
Questions? Email or call Carolyn Russell at 203.625.8933, or visit greenwichacademy.org.
Darius Mead Circle
Elizabeth Milbank Anderson Society
$50,000 to $74,999
$25,000 to $49,999
Head of School Society
$15,000 to $24,999
Oak Tree Guild
$10,000 to $14,999
$6,000 to $9,999
1827 Founder's Council
$3,000 to $5,999
For Alumnae, Faculty & Staff
$1,500 to $2,999
$750 to $1,499
(through 10th reunion)
$100 to $749