Giving Tuesday 2021

As the world continues to battle and recover from the effects of the Coronavirus, giving is more important than ever. There are still many individuals and charitable organizations that need additional funds to continue providing their services. The tenth annual #GivingTuesday will take place on Tuesday, November 30th, 2021. Anyone can participate in the #GivingTuesday campaign, whether it be through social media influencing, volunteering, donating goods or services, or monetary contributions. This year, #GivingTuesday is not only being used as a platform to raise awareness and funds for charitable organizations, but to also bring communities together through generosity and giving back amid the lingering effects of the pandemic.

The CARES Act (“Act”) has temporarily suspended certain rules and limitations placed on cash charitable contributions, making it more tax advantageous to donate. The 2020 Act, which allowed individuals to deduct charitable giving up to 100% of AGI, still applies for 2021. The increase in the deduction limit for corporations remains at 25% as well, whereas prior law limited the amount to 10%.

The CARES Act allowed taxpayers who do not itemize a $300 deduction for cash charitable contributions made in 2020. For 2021, the deduction allowed has been increased to $600 for married filing joint taxpayers (still $300 for other filers). The deduction is allowed as an above the line deduction in determining taxable income.

To ensure that the donation is made to an eligible charitable organization, the Internal Revenue Service (IRS) provides the IRS Tax Exempt Organization Search tool on IRS.gov. The Tax-Exempt Organization Search tool is a searchable online database that lists most eligible charitable organizations. It is important to maintain clear and organized records of all gifts made. Taxpayers who give money or goods to a charity by December 31, 2021 may be able to claim a deduction on their 2021 federal income tax return and reduce their taxes.

For additional information, please contact any of your trusted advisors at HHM today.