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Tax Advantage Donations

Did you know there are several ways to make tax advantage donations to Nardin Park? This means your contribution can also reduce your tax liability. It’s good stewardship!

Nardin Park UMC is Eligible to receive Donor Advised Funds (DAF) Grants & Qualified Charitable Distributions (QCD)
Donor Advised Funds are the fastest growing charitable giving vehicle in the United States.

A Donor Advised Fund, or DAF, is a giving vehicle established at a public charity. It allows Donors to make a charitable contribution, receive an immediate tax deduction and then recommend grants from the fund over time.

A Donor Advised Fund is an investment account established by a Donor for the purpose of making charitable contributions. Funds contributed to a DAF are tax deductible in the year they are given and allowed to gain interest tax-free. Donors issue “Grants” to Nardin Park UMC directly from their DAF. Contributions to a DAF are irrevocable and can only be used for charitable purposes.
Qualified Charitable Distribution (QCD) can be made from Donors who are 70½ or older from their IRA of up to $100,000 annually. The QCD should be donated directly to your organization and is exempt from income tax to the Donor.

The “CARES Act” – Special Tax Incentives for 2020 only
To encourage more charitable giving in 2020 and to help charitable organizations recover from the pandemic, the CARES Actprovides additional tax relief for Donors on their 2020 tax return.
In 2020 only, cash contributions to Nardin Park UMC (checks, ACH, etc.) are deductible up to 100% of a donor’s adjusted gross income (AGI).Ordinarily, these deductions are limited to 60% of AGI.
Also, in 2020, donors are able to reduce taxable income by up to $300 for cash contributions.

Contact our accountant Karl at Karl.npchurch@gmail.com if you have any questions.

It is important to check with your Tax Advising Professional to verify your status regarding tax deductible donations.