Welcome back special guest, Stelter’s Senior Gift Planning Consultant, Lynn M. Gaumer, J.D., to suggest ways to alert your donors about expiring CARES (Coronavirus Aid, Relief, and Economic Security) Act provisions.
As we approach the final quarter of 2021, we have some soon-to-end opportunities for our donors. Use the next few weeks to add urgency to your appeals.
These Opportunities Expire Dec. 31
The following two tax benefits end when 2021 ends (unless Congress acts).
1. A $300/$600 universal charitable deduction for cash gifts. The deduction is $300 for single filers and $600 for married couples filing jointly. This is available to taxpayers who take the standard deduction. This tax incentive is available for cash gifts to qualified charities (but not to supporting organizations or donor advised funds).
2. A lift on the cap on deductions for cash contributions. Contributions to public charities are generally limited to a percentage of a taxpayer’s adjusted gross income (AGI). The extended CARES Act provisions lifted the cap on annual contributions for those who itemize, increasing it from 60% to 100% of AGI for 2021. Any excess contributions available can be carried over to the next five years (but likely at the 60% rate). For corporations, the law raised the annual limit from 10% to 25% of taxable income.
How Can I Get the Word Out?
Use all your donor touchpoints to let them know about the expiring tax incentives. Here are a few ideas:
Change Your Email Signature Line: Just above your name, add messaging about the expiring tax incentives, such as “Contact me to learn more about expiring charitable giving tax benefits this year.” Or, “Thinking of making a gift of this year? Contact me to learn more about expiring tax incentives.”
Tip: If you’re a Stelter Web client, you can direct donors to your CARES Act article. Add “/extended-tax-benefits” to the end of your planned giving website URL to find it.
Connect With Your Donors: This news is worth a phone call. Let donors know they may be able to increase their giving this year (and take a deduction) by taking advantage of these expiring provisions.
Run a Mini Campaign on Social Media: Encourage your donors to use their company’s matching gift policy to increase their impact. Follow up with an impact story that reiterates your mission. Highlight an initiative wrapping up in 2021 and plant the seed for next year’s goals.
Free Email Template
If you would like to send an email, we can help! We have created a sample letter you can customize and send to your donors. Access our sample copy by clicking on the link below. We hope you find it helpful as you and your fundraising team end the year on a high note.