Although The Magdalen House has experienced ongoing challenges and uncertainty over the past two years, the agency has continued to meet the critical and vital needs of alcoholic women and their families, both in-person and virtually. As you consider your End of Year giving opportunities, it is important to understand that the benefits of the CARES Act, for individuals and corporations who are dedicated to providing much-needed financial support to charitable organizations, such as The Magdalen House, have been extended through the end of 2021.
The CARES Act expands charitable giving incentives by allowing taxpayers who take the standard deduction to claim an “above-the-line” deduction of up to $300 of contributions to qualified charities this year, including The Magdalen House. This does not include gifts made from donor-advised charitable funds or gifts of stock. At The Magdalen House, a gift of $300 could:
- Provide personal care items, such as shampoo, a toothbrush, toothpaste, and deodorant, to six women in our First Step program;
- Provide 30 Big Books to the hundreds of alcoholic women and their families who seek out our services every year;
- Provide breakfast for six women in our First Step program throughout their two-week stay.
For those who itemize their deductions, the CARES Act allows for cash contributions to qualified charities, such as The Magdalen House, to be deducted up to 100% of your adjusted gross income for the 2020 calendar year. For business owners, the 10% limit has been increased to 25%. This measure applies both to cash gifts and public charities but does not apply to contributions from private foundations or donor-advised funds.
Additionally, appreciated non-cash assets (such as securities, real estate investments, and stocks, etc.) held for more than one year may offer tax benefits when compared to cash donations in addition to those realized for standard and itemized deduction. By giving the non-cash asset directly to a charitable organization, donors can potentially eliminate the capital gains tax (the rate of which may increase in 2022) they may otherwise incur if they sold the asset and donated the proceeds.
If you would like to speak to someone about donating to The Magdalen House, please contact Whitney Mask at firstname.lastname@example.org.
Every donation helps to provide life-saving recovery services to alcoholic women and their families at absolutely no cost. On behalf of The Magdalen House, we wish you and your family a safe and joyful holiday season. Your support is the greatest gift of all.
*For specific questions regarding the extended charitable tax benefits and how it affects your personal 2021 federal tax filings, please consult your financial advisor.