Despite the economic turmoil of 2020, a number of givers at NCF were able to give up to 100 percent of their adjusted gross income (AGI). Now, this exciting opportunity has been extended through 2021.
If you itemize deductions on your income tax returns, you can deduct charitable cash gifts up to 100 percent of your AGI this year and may eliminate (or significantly reduce) your federal income taxes.
Here are two ways to get to 100%
Option 1 (all cash):
You can give up to 100 percent of your AGI in cash (60 percent under the pre-existing tax law still in effect, and an additional 40 percent under the CARES Act).
Option 2 (cash and assets):
You can give up to 30 percent of your AGI in asset gifts (such as real estate and business interests) and 70 percent in cash.
Importantly, with either option, the portion of the additional giving opportunities allowed under the CARES Act must be given only to churches or other public charities, rather than donor-advised funds or private foundations.