Now is a great time for giving. When you make a donation by December 31st to the Otsego Community Foundation, you aren’t just giving money—you’re creating positive impact that makes Otsego County better. Here are six ways to make the most of your year-end giving:
1. Give early and complete your gift by December 31st. A gift by check is complete when mailed (postmarked) by December 31st. Gifts by credit card are complete when your credit card account is charged. Even if it’s last minute, you can donate online up until 11:59 p.m. on December 31st.
2. Give in someone’s honor. Donate in lieu of a holiday gift. Whether it’s to your own Donor-Advised Fund or one of our other funds, be sure your gift is postmarked or submitted online by 11:59 p.m. on Dec. 31. If you would like your recipient to receive a card notifying them of the gift, please make your donation by December 20th, 2021. When mailing your gift, please include the gift recipients name and contact information.
3. Consider gifting stock. Gifting appreciated stock that you have held for more than a year allows you to deduct the full fair market value on the date of the gift while avoiding paying capital gains tax. The gift may be contributed to a donor advised fund which can be used over time to support nonprofit organizations and charitable cause you care about.
4. Give with your retirement plan. The Cares Act suspension of required minimum distribution (RMD) has not been extended into 2021. If you are 70 ½ and older, you can donate up to $100,000 in IRA assets directly to the Community Foundation without taking the distribution into taxable income. Remember, the new RMD age is 72; if giving a QCD at 70 ½, you will reduce future RMD by lowering your overall IRA balance.
5. Bunch multiple years’ gifts into a Donor-Advised Fund. With the increased standard deduction ($12,550 for individuals, $25,100 for couples for 2021), it may be difficult for some people to receive a tax benefit from charitable giving every year. One solution? Bunch multiple years’ worth of donations into a gift to a Donor-Advised Fund at the Community Foundation. You’ll get the full tax deduction now, while spreading out grants to your favorite charities over time and benefiting from the larger standard deduction in those later years. We can set up a Donor-Advised Fund for you in one meeting.
6. Let the Community Foundation do the legwork. Working with us gives you access to our extensive knowledge of the local nonprofit community and the needs of our county. We’re here to help you achieve your charitable goals. Email Dana Bensinger or call (989) 731-0597 to get started.
Thank you for making a difference in Otsego County!