End of Year Giving

2020

Thank you to everyone who has continued to give sacrificially

to Grace Fellowship throughout 2020.

We realize and acknowledge just how difficult this year has been for everyone and to continue to witness the generosity of our congregation is an awesome testimony to just how faithful God is to His people. If you would like to make a donation by the end of the calendar year, please be aware of these important dates:

• December 24th – Last day to give at an in-person service (via the collection boxes).
• December 31st – Last day to have your mailed-in checks postmarked. All Grace Fellowship Campuses will be open this day to receive any dropped off checks. 
• December 31st – Last day to submit an online donation. If you have not given online before, please be aware that online is the easiest and most efficient way to give to Grace Fellowship.

And for those preparing for the upcoming tax season please find information regarding Charitable Giving and the CARES Act below.

Donations of Securities

As of the date of this publication, the stock market is at an all-time high. The Dow Jones Industrial Average is over 30,000 points. If a donor sells stock that has increased in value, the gains on the sale may be subject to capital gains taxes, which could be as much as 20%. By donating these stocks instead of selling, the donor not only avoids the capital gains tax, but is able to take a charitable deduction for the value of stock as of the date of the gift.

This is a good time for donors to review their holdings with advisors and make decisions about possible donations of securities.

Another tool to consider is the use of a donor-advised fund. Donating to a donor-advised fund allows a donor to take a deduction now and then provide support to chosen charities over time.

2020 has been a difficult year for individuals, businesses, and nonprofits as we all have navigated the various impacts of the COVID-19 pandemic. Knowing the desire of the American people to reach out and help others in time of need, lawmakers included several significant changes in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was signed into law on March 27, 2020 to encourage charitable giving. As you begin your year-end tax planning, it is important to make them aware of these key changes.

Individual Contributions

Under the CARES Act, beginning in 2020, individuals who do not itemize deductions may deduct up to $300 in charitable cash contributions (the limit applies regardless of the filing status). This universal charitable deduction is an above-the-line deduction and is deducted from the taxpayer’s income prior to the calculation of adjusted gross income. This deduction is in addition to the standard deduction.

Another positive change for individual taxpayers is this: the limitation for individuals who are still able to itemize their deductions has been significantly relaxed. Prior to the CARES Act, deductions for cash contributions to qualified charitable organizations was limited to 60 percent of the individual’s adjusted gross income. Under the CARES Act, the deduction for cash contributions to a qualified public charity in 2020 has been increased to 100 percent of the individual’s adjusted gross income. This is a substantial change as it could theoretically lead to zero taxable income for a donor. If the contribution amount exceeds 100 percent of the individual’s adjusted gross income, then the excess can be carried forward and utilized over the next five years.