FOUNDATION

from The Reflector December 2020

SYNAGOGUES

.Foundation Happenings

End of year giving: Tax benefits while doing good

By Robert Nomberg president & ceo richmond jewish foundation

“When ye reap the harvest of your land, thou shalt not wholly reap the corners of thy field, neither shalt thou gather the gleanings of thy harvest…thou shalt leave them for the poor and the stranger.” – Leviticus 19:9-10

In times of need, giving charitably truly becomes paramount. During the first four months of 2020 when the pandemic started, “donors nationwide recommended 544,000 grants (from donor advised funds) totaling $2.4 billion—an increase of 16% from the same time in 2019,” according to Kiplinger.com.

Charitable giving remains a priority locally too, despite 2020’s many challenges. During our recent fiscal year ending June 30, RJF provided a total of $2.4 million in grants from scores of our DAFs and endowment funds to support our local Jewish community and nonprofits around Virginia, the U.S., and around the world. This total was an increase of $100,000 from the prior year. Thank you, RJF donors, for supporting the causes near and dear to your hearts.

Now, before 2021 arrives, you may be reviewing your estate, financial, and/or tax plans. If so, please keep charitable giving in mind, since you may earn generous tax benefits when you donate. You can even leave a legacy while you’re at it.

Here are some tips to get you started: Secure this Simple Tax Deduction: The Coronavirus Aid Relief and Economic Securities (CARES) Act allows for individuals who take the standard deduction in their tax returns to include an above-the-line deduction of up to $300 for cash contributions. To use this benefit, you must donate before year-end directly to a qualified public charity or into an endowment fund with RJF to leave a legacy. Gain Benefits for Large Gifts: According to USNews.com, “In 2020, you can deduct cash gifts of up to 100% of your adjusted gross income (AGI), rather than the usual 60% limit… (to help)…people reduce their taxable income significantly in 2020, and it may also help retirees who have money to give but bump up against the income limits for the deduction.”

Again, your gift must benefit a qualified public charity or fund an endow to support the charities of your choice. Double Your Tax Break: By donating appreciated stock held for over one year, you may deduct the stock’s fair market value (if you itemize) AND avoid paying long-term capital gains taxes on your profits. Create a DAF: A donor advised fund with RJF will streamline your annual charitable giving. With a DAF, you may donate appreciated assets or cash into your fund, earn immediate tax benefits, and recommend grants to any qualified charity at any future time. You can start a DAF with $5000 and it takes minutes to create. How about a tax credit? Donors receive federal and state tax deduction, as well as a state tax credit. Individual or business donors receive a tax credit equal to 65% of the donation. T h e minimum donation amount is $500. The maxi- m u m donation amount for individuals and married couples is $125,000. There is no maximum limit for any business entity.

Initiate a Qualified Charitable Distri-

bution (QCD): If you are 701/2 and older, you may give up to $100,000 per year taxfree from your IRA to establish or grow an endowment fund or directly to any charity you choose, via a QCD.

The gift counts toward your required minimum distribution (RMD) but isn’t included in their AGI. As USNews.com points out, RMDs are halted in 2020 due to the CARES Act, but by donating from your IRA instead of other accounts, you will reduce the amount needed for future RMDs, so it serves as an e ective financial planning initiative. (Note: A QCD may take some time to process; please contact your IRA provider and RJF soon to ensure it is completed by December 31.)

As always, consult with your trusted tax advisor for full details to discuss which options are the best for your personal situation.

When I fi rst studied Medieval Jewish History, I learned that there were conspiracy theories that came out of Europe and accused Jews of poisoning wells and kidnapping children. These were conspiracy theories that accused Jews of endangering the environment. They accused the Jewish religion of having terrible rituals.

Later I learned of a document called the “Protocols of the Elders of Zion,” which was written in Russia in the early 1900s. This fi ctional pamphlet said that Jews were part of an international conspiracy to undermine the world economies. More recent theories have accused Jews of owning and/or controlling the media.

Hitler took some of his propaganda cues from the “Protocols of the Elders of Zion.” He used the “conspiracy theory” to convince the German public that the Jews were the cause of all their problems after World War I. Hitler promised a return to prosperity and a return to world prominence once he eradicated the Jewish infl uence in German life. Hitler, the dictator, discriminated against the Jews and made them the scapegoat for all of the ills that had befallen Germany. Through incremental changes, the Nazis made racism and anti-Semitism the national policy of the Third Reich.

Today in America, we fi nd ourselves in multiple crises. The COVID pandemic has led to high levels of unemployment and economic decline for hundreds of thousands. We have a crisis of racial inequality and the country is embroiled in terrible partisan politics.

This crisis had led to what some now believe is the next conspiracy theory, QAnon. This theory blames the evils of the world on certain powerbrokers who also worship Satan and abduct children. While we do not know how many people currently identify with the QAnon movement and its beliefs, we know it has made its way into mainstream media with enough followers to raise a red fl ag of concern.

These di cult times in which we live have set the tone and people, once again, turn to conspiracy theories for answers. ADL reports tell us that AntiSemitism is on the rise. The attacks on Synagogues in Pittsburgh and San Diego make the danger even more apparent. Therefore, we must remain vigilant and proactive in our e orts to identify and oppose bigotry and baseless theories when we fi nd them, and not allow them to grow beyond our ability to address them.

Come join the over 5,000 visitors who have come to the Museum since we re-opened on July 6. It is imperative that we continue our learning about the Holocaust and other genocides and the role racist ideology played in the history of these events.

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