More Ways to Give
Cash
Like most people, you probably choose to make the bulk of your charitable gifts with cash, check, or credit card. Of course we’ll always accept your gifts of cash to take care of the young men and women of Mercy Home. But you should be aware that if you itemize deductions on your taxes, you can always deduct a gift of cash made to Mercy Home (up to 60 percent of your adjusted gross income).
In addition, the 2020 CARES Act made two specific tax provisions for charitable gifts of cash that you should keep in mind:
1. Temporary Universal Charitable Deduction
You can deduct your cash gifts to Mercy Home (up to $300 per for single taxpayers, and $600 for a married couple), even if you take the standard deduction on your federal tax return.
2. 100% Charitable Deduction for Cash Gifts
The CARES Act also allows those who give cash to charity to deduct up to 100% of their adjusted gross income (AGI) through the rest of 2021. This means that if you are facing a heavy tax burden this year, a large cash gift to charity could significantly decrease (or even eliminate) your federal tax liability.
Learn more about how The Cares Act impacts your giving.
Savings Bonds
If you’ve been holding onto your savings bonds for many years, chances are good that they are no longer earning interest. Because bonds cannot be transferred to another individual or charity during your lifetime, you may face a problem of heavy taxes when you go to cash them in. Here are two solutions for turning these bonds into a charitable gift (and potentially helping you and your family too):
1. Redeem your savings bonds, and pay the taxes owed. But then take the next step and invest the proceeds in a product that will help you and help others – like a charitable gift annuity. The charitable deduction you receive may offset the taxes owed on the redemption. This also allows you to convert an asset that was paying no interest into one that pays an income – for life. And the best part is that you’ll be helping kids in need today, rather than wondering what to do with the savings bonds that have been collecting dust in the attic.
2. For bonds that should be held, a simple planning technique can help. Savings bonds make great estate gifts to Mercy Home, because, as a charity, we do not pay tax upon the redemption. Simply list these assets in your will or trust, and name Mercy Home as the beneficiary. For your children or other heirs, choose to pass on appreciated stock instead: they will receive a “step-up” in basis as of the date of your passing, which will limit their tax liability. Everyone wins!
Learn more about turning bonds into a charitable gift.
Life Insurance
If you own a fully-paid insurance policy, but no longer need the coverage (perhaps because your children are grown and financially independent), you can use it to make a substantial gift to charity at no cost to you, and lower your tax bill at the same time.
Simply notify your policy holder and let them know you’d like to transfer ownership of the policy to Mercy Home. You will receive an immediate tax deduction for the value of the policy, and you will be entered into the Archangel Society for your generous legacy gift to the children of Mercy Home.
Practicing philanthropy is a way to practice your values – it is highly personal, and there is no “one size fits all” approach to supporting your favorite charitable causes. Read this blog post to learn more about different options for supporting the children of Mercy Home and the other charities closest to your heart.
Useful information and contact the team
Legal name and Tax ID
Legal Name:
Mission of Our Lady of Mercy, Inc.
Employer Identification Number (EIN):
36-2171726
More information for financial professionals.
Philanthropic information presented herein is intended for friends and supporters of Mercy Home for Boys & Girls. This material may be helpful in your tax and financial planning, and is based on current laws and recent court decisions. You should consult your own legal, tax, or financial planner to determine how these gift vehicles may apply to your own situation.