by: Tammie Richter, Foundation Director Southwest Health Foundation and Lori Bahr, Vice President – Trust Officer Mound City Bank and Estate Planning Chair Southwest Health Foundation Council
What do 3D mammography, disinfecting robots, and specialized equipment for emergency care have in common? They (along with other life-improving and life-saving equipment) were all purchased with the help of our generous community members who have donated to the Southwest Health Foundation.
Every day at Southwest Health, we work to ensure when you need us most we are here for you. Perhaps the life of someone close to you is better today because our staff is here, prepared, and equipped. The truth is, we all need great healthcare, and that’s only possible because generous people like you support it. Support comes to us in the form of your trust when you turn to us for care. For this reason and many others, Southwest Health is reminding taxpayers of a special new provision that will allow many people to easily deduct up to $300 in donations to qualifying charitable organizations this year. Due to special tax law changes made earlier this year, cash donations up to $300 made before December 31, 2020, are now deductible for the 2021 filing tax year.
According to the Internal Revenue Service nearly nine in 10 taxpayers now take the standard deduction and could potentially qualify for this new tax deduction. This is why the Coronavirus Aid, Relief and Economic Security (CARES) Act, enacted last spring is so significant this year. The CARES act includes several temporary tax changes helping charities, including the special $300 deduction designed especially for people who choose to take the standard deduction, rather than itemizing their deductions. According to the new provision, individual taxpayers can claim an “above-the-line” deduction of up to $300 for cash donations made to charitable organizations during 2020. This means the deduction lowers both adjusted gross income and taxable income. To clarify, cash donations include those made by check, credit card or debit card. It is important to note that cash donations don’t include securities, household items, or other property.
For those taxpayers who do itemize, the 60% limit on contributions compared to the adjusted gross income is increased to 100%. For corporations, the annual charitable contribution limit for 2020, which is usually 10% of adjusted gross income, is increased to 25%. Any donations greater than 25% can be deducted within the following 5 years.
This year, our Foundation Council Members ask you to join them in designating your gift to the area of greatest need or towards one of the six items on our wish list. If you are considering making a donation or including Southwest Health in your will or trust, simply visit www.southwesthealth.org/giving. Please consider joining us in supporting great healthcare. Making your tax deductible donation is simple and impactful. If you have any questions, contact me at (608) 342-4704 or at email@example.com. Thank you for your ongoing support!
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