It’s the end of 2020 and we all have a lot on our proverbial plates and on our actual minds as we prepare to end the year and ring in 2021. Pinkaloo is here to simplify your year end, at least as it relates to your philanthropy and charitable giving. There are two opportunities to help that can may want to consider acting on before the end of the year.
Fund Your Account, Get a Charitable Tax Deduction for 2020. Distribute Your Funds Later
You may remember that you get a charitable tax receipt immediately when you make a deposit into your giving. One of the benefits of this feature is that you can fund your account in December, get your tax receipt immediately, and then later choose how you want to distribute the funds. Your giving account is very similar to a Health Savings Account (HSA) that the funds rollover to next year.
If you know that you will want to make donations in 2021 and have some extra cash sitting around now, this may be a good option for you.
If you’re expecting a second stimulus check from in the coming weeks and are planning to donate it, as we saw a lot of back in April and May, funding your account now may be a good option for you.
If you haven’t yet hit the $300 charitable tax deduction benefit that was included in the original CARES Act and want to, funding your account may be a good option.
We aren’t tax professionals and you should definitely reach out to one to get professional advice, but there are many instances when making a contribution to your giving account makes good financial sense, and sets you up to make an impact in 2021! Nerd Wallet has a great article on the tax considerations around charitable giving.
Get Organized Now to Make Tax Time Easier
While our goal is that you love your giving account so much that you make all of your charitable donations through it, we know there are all sorts of reasons why you may make additional donations outside of your account. Maybe you were in person, at an event, before COVID, and made a donation then. Or maybe you only opened your account midway through the year and had made donations prior. No matter the reason, we have you covered.
In your Documents, you can upload the tax receipts that you received from your other donations, so that you have all of your tax receipts in one place. Then, in January, we aggregate all of your tax receipts from your giving account, along with your other receipts that you uploaded, and provide you with one PDF that has all of them aggregated, to make it easy to maximize your tax benefit.
It’s that easy! If you have a few quiet minutes before the end of the year, go dig up those tax receipts and upload them. You’ll thank yourself come tax time in a few months.
Thank you for your generosity in 2020 - we all know it was much needed across the country and in your communities. We look forward to continuing to serve you in 2021 and beyond.