UNDERSTANDING HOW THE CARES ACT IMPACTS CHARITABLE GIVING IN 2021

In the wake of the COVID-19 global pandemic, the generous community of Christ-following givers is doing what it has always done: passionately mobilizing resources for churches and charities serving those in need. The CARES Act, passed in March of 2020, featured numerous tax benefits for charitable giving. The following benefits have been extended for the 2021 tax year:

• Non-itemizing taxpayers may claim a $300 charitable contribution deduction for cash gifts to churches or public charities.

• For itemizing taxpayers, the maximum 60% of adjusted gross income (AGI) charitable contribution limit increases to 100% of AGI for 2021. This allows you to claim a deduction up to the full amount of your AGI for charitable cash contributions.

• Waiver of required minimum distributions (RMDs) from retirement accounts.

As always, we encourage you to speak with your financial advisor about how this opportunity impacts your particular situation.