The End of the Year

Well, we have almost reached the end of this wildly frustrating year. Christmas is right around the corner, and I’m hoping all of you are able to spend some time with family, whether in person or through connections from a distance. I’m also hopeful that 2021 will shine a little brighter than 2020 and be a little easier for all of us.

In the spirit of the season, I thought I’d write a little bit about charitable giving this month, and also share some information about a few of the organizations we at Anderson Griggs have supported over the years. I know many of you often donate to various organizations, and you are probably already familiar with the tax benefits you may be eligible for. However, due to the Coronavirus Aid, Relief and Economic Security (CARES) Act, there are a few changes to those rules that are only applicable this year.

If you usually itemize deductions on your tax return, you can continue to deduct your charitable contributions. Previously for charitable cash contributions, you were able to deduct contributions up to 60% of your adjusted gross income. For 2020, you are able to deduct contributions up to 100% of your adjusted gross income.

Also, even if you do not itemize deductions, you are able to deduct cash charitable contributions of up to $300 on your 2020 tax return. While this may not seem like much, every little bit makes a difference, both to you (and your taxes) and to those in need.

Finally, though it is less relevant this year because required minimum distributions (RMDs) have been waived for 2020, those of you who must usually take RMDs may want to keep qualified charitable distributions (QCDs) in mind for the future. If you are 70 ½ or older, you can contribute up to $100,000 from your IRA directly to a qualified charity each year, and this distribution is not counted as taxable income. Thus, if you regularly give to charitable organizations each year, it may make sense for you to use your required minimum distribution to make those contributions directly to the charity from your IRA.

This year at Anderson Griggs, we have given to several organizations. Among them are the Children’s Attention Home, the York County Free Clinic, Pathways, and Girls on the Run.
My family has a long history with the Children’s Attention Home. My dad served on their board many years ago, and he would often bring Justin & me to the home when we were young to play with the kids there. Later, Justin also became a volunteer with the organization for a while. The Children’s Attention Home provides temporary shelter and holistic care to abused or neglected children and homeless teens.

The York County Free Clinic is the only nonprofit free medical clinic in York County. It provides treatment for illness, management of chronic conditions, eye care, lab services, radiology services, and prescriptions at no charge to uninsured and low income York County residents. 

Pathways is a coordinated community collaboration providing a single location in Rock Hill where those in need can access a variety of services including food, clothing, shelter and housing options, counseling, spiritual guidance, governmental assistance, medical and mental health care, substance abuse treatment, education, transportation, life skills, job training, and employment placement.

Finally, Girls on the Run Tri County SC provides programming for elementary and middle school girls that helps them build social, emotional, and physical skills. The girls build confidence and learn to respond to themselves and others with empathy and compassion. At the end of the program, all the girls participate in a 5k. Justin and I, along with our mom, have participated in these in the past, and it is a joy to see how empowered the girls feel after completing the event. 

These are only a few of the many worthy organizations serving our community; there are so many more here and throughout our nation and the world. We at Anderson Griggs love donating our time and funds when we are able, and we know many of you do as well. Outside of this, I know many of you are blessings to others in so many different ways.

We hope you all have a wonderful Christmas and a very Happy New Year.

Sincerely,

Libby Anderson, CFP®