We want to share a few quick tips for ways that you can make a year-end gift with impact, which offers tax advantages for you and your family. 

The Coronavirus Aid, Relief, and Economic Security (CARES) Act 

Passed in late March 2020, the CARES Act provided over $2 trillion in economic relief to taxpayers, businesses, and nonprofits. The Act contained a number of changes to tax policy related to charitable gifts of cash to non-profit organizations like Smart Approaches to Marijuana:

  • Non-Itemizers Are Eligible for a New $300 Charitable Deduction
  • Taxpayers who are non-itemizers and take the standard deduction do not typically qualify for itemized charitable deductions. For these non-itemizing individuals in 2020, a $300 above-the-line adjustment will be made to reduce the donor’s adjusted gross income and thereby reduce taxable income.
 
  • Increase in Adjusted Gross Income Limit from 60% to 100%
  • The usual deduction limit for cash gifts by individuals to public charities is 60% of adjusted gross income. In 2020, gifts of cash are deductible up to 100% of your adjusted gross income.

  • Increase in Corporate Charitable Deduction from 10% to 25% 
  • The taxable income limit that applies to cash contributions by corporations has been increased from 10% to 25% for 2020 making this a great year to give through your business.

December 31st – A Key Deadline
 
Gifts of stocks, other securities, and IRA Charitable Rollovers can take time to process. Stock transfers, for example, take three business days. Initiate your transactions no later than December 26th to assure that gifts are completed by midnight on December 31st, and be sure to keep your receipt stating the date of the contribution and the amount.

If you are 70½ years old or older, you can give up to $100,000 from your IRA directly to qualified charities such as SAM.

Having the funds transferred directly from your IRA to a charity as a Qualified Charitable Distribution prevents the money from becoming taxable income and could help reduce the amount of Social Security retirement benefits that are deemed taxable.

If you have large capital gains in your investment accounts, you can double your tax break when you consider donating those stocks. You’ll get a full charitable donation credit for the fair market value of the gift and SAM—as a qualifying tax-exempt organization—can sell the stocks without paying capital gains tax, regardless of how much your stock has appreciated.

If you prefer to make a cash donation using a credit or debit card or by sending a check, you can always donate through our secure PayPal link, or by mailing your check to our office at:

107 S. West Street, Ste 757
Alexandria, VA
22314
We always recommend you consult with your tax, legal and financial professionals to consider which charitable gift options are best for you. 

And please keep in mind, gifts must be completed or post-marked by midnight on December 31st to receive a charitable deduction for the 2020 tax year
 
If you would like to speak with someone or have questions about the best way to make your gift, please call or email Brendan Fairfield at 609-994-7184 or [email protected].

Every dollar you donate to SAM makes a difference. As a member of the SAM family, let’s keep expanding the critical work we do together this year.
 
We wish you a joy-filled holiday season and new year, and thank you sincerely for all you do.
All my best,
Dr. Kevin Sabet,
President & Co-Founder
Smart Approaches to Marijuana (SAM)
Smart Approaches to Marijuana | www.learnaboutsam.org