As we approach the end of 2021, I want to thank all of you who have supported Paraclete associates this year. The prayers, support, and financial resources you have invested are blossoming in amazing ways. Praise God!
I also want to be sure you knew that right now is an excellent time to build on that investment. Whether you itemize deductions or not on your annual tax return, there are temporary opportunities in the tax law encouraging you to invest in a Paraclete associate, but those provisions are set to expire on December 31! This is so important that the IRS issued a special “tax tip” earlier this fall for generous givers like you. Here is the gist of it.
- It may not make sense for you to itemize deductions every year—that is the case for many givers. However, you can deduct up to $300 contributed to Paraclete during 2021—$600 if you are a married couple filing a joint return—even if you take the standard deduction and do not itemize.
- If you do itemize deductions, here is an opportunity for you. Usually, your eligible gifts cannot exceed a specific fraction of your income. But for gifts in 2021, you can elect to claim a charitable deduction for donations up to 100 percent of your adjusted gross income with some limited exceptions.
- If you run a business, there are incentives for you, too. The deduction thresholds on most donations for many businesses have temporarily increased depending on your status as a corporation, sole proprietorship, and so forth. It is a benefit worth exploring with your accounting team.
Another idea that is not in the IRS tax tip but is worth considering—you might reduce your tax bill by making a distribution from your IRA to Paraclete. This can satisfy the required annual minimum distribution for taxpayers ages 72 or older, while not resulting in taxable income. It’s effectively another way to qualify for a charitable tax benefit—whether you itemize on your taxes or not!
Finally, Paraclete is now accepting donations in cryptocurrencies. The currencies have shown such strong growth that taking withdrawals can result in significant taxes. Donating cryptocurrency to Paraclete could represent a significant tax saving over converting the cryptocurrency to cash and donating the dollars. See paraclete.net/give for details.
Thank you again for your continued partnership with Paraclete associates. Our team is truly humbled by your generosity.
CEO, Paraclete Mission Group