12/16/2021

IRS Promotes Tax Break for Year-end Charitable Giving

Under the temporary provision, taxpayers don’t need to itemize deductions

The Internal Revenue Service (IRS) partnered with Independent Sector and National Council of Nonprofits this week to draw attention to a special tax provision that allows more people deduct donations to qualifying charities on their 2021 federal income tax return.

The pandemic-related provision allows married couples filing jointly to deduct up to $600 in cash donations and individual taxpayers to deduct up to $300 in donations made to charities by year’s end, Dec. 31, 2021. Under the temporary provision, taxpayers don’t need to itemize deductions on their tax returns to take advantage of the incentive.

“The pandemic has created unique challenges for tax-exempt organizations, and we want to make sure people don’t overlook this special tax deduction that’s available this year,” said Sunita Lough, IRS commissioner of the Tax Exempt and Government Entities (TE/GE) division. “Donations to qualifying charities can reduce people’s tax bill when they file in 2022.”

Leaders from Independent Sector and National Council of Nonprofits said many charities have seen reduced contributions but increased demand for their services during the pandemic.

“At a time when nonprofits continue to see immense demand for services [and] are facing significant challenges hiring and retaining staff to deliver those services, every donation counts,” said David L. Thompson, vice president of public policy at National Council of Nonprofits. “We’re thankful that the universal (or non-itemizer) deduction is available through the end of the year to encourage every taxpayer to give a little bit more to the missions [about which] they care.”

This article was provided to OSAP by ASAE's Power of A and Inroads.