Dear friend,

This weekly email is normally a “fundraising-free zone.” But as we approach the end of 2021, right now is an exceptional time to build on your investment in the work of Five Talents. There are temporary opportunities in the tax law encouraging you to invest in our charitable organization now. But those provisions are set to expire on December 31st!

Here is the gist of the benefits meant to support your giving this year:

• It may not make sense for you to itemize deductions every year. But right now, you can deduct up to $300 contributed to this ministry during 2021 — $600 if you are a married couple filing a joint return — even if you do not itemize and you take the standard deduction.

• If you do itemize deductions, usually your eligible gifts cannot exceed a specific fraction of your income. But for gifts in 2021, you can generally claim a charitable deduction for cash donations up to 100 percent of your adjusted gross income (consult your tax professional or read the IRS update for limited exceptions). https://www.irs.gov/newsroom/expanded-tax-benefits-help-individuals-and-businesses-give-to-charity-in-2021.

Please consider taking advantage of these opportunities before December 31st.

Finally, one more idea that is not in the IRS tax tip but is worth considering. You might reduce your tax bill by making a distribution from your IRA to our ministry. This can satisfy the annual required minimum distribution (RMD) for taxpayers age 72 or older, while not resulting in taxable income. It’s effectively another way to qualify for a charitable tax benefit — whether you itemize on your taxes or not!