Gift of Adoption and COVID-19

Dear Friends,

During this unprecedented time, we want to extend our best to you and your family – hoping that you remain safe and well.

It is a time to extend our gratitude for your belief in and support to the Gift of Adoption mission. 

We want to take a moment to update you on our grant program and upcoming fundraising events.

Gift of Adoption Grants

Gift of Adoption continues to award grants each month. It has always been our practice (and it is especially critical now) to work closely with our grant recipients, alongside adoption agency/attorney partners, to ensure that, despite travel plan changes, delays, or unexpected costs their adoptions move forward and their waiting children come home for good.

Are you pursuing adoption and facing a financial obstacle? Learn about our Adoption Assistance Grants and begin the application process.

Gift of Adoption Events

We are working closely with our Chapter Board leaders from around the country to continue our fundraising efforts in creative and responsible ways – based on guidance from local, state, and national public health organizations, including the Centers for Disease Control (CDC), and the World Health Organization (WHO). We will communicate directly with anyone registered to participate in an upcoming fundraising event if there are postponements or cancellations. You can find up-to-date fundraising event information on our website: (giftofadoption.org/upcoming-events/).

Charitable Giving

The CARES Act temporarily raises the limit on charitable deductions for cash contributions to public charities from 60% of your adjusted gross income (AGI) to 100%. If you are charitably inclined, you could leverage this provision to cut or completely offset your taxable income for 2020.

Note, too, that you can reap the full benefit by “stacking” cash contributions with gifts that are subject to unchanged limits. For example, donations of appreciated securities are subject to limits of 20% or 30% of AGI, depending on various factors. You could donate securities you have held for more than one year (that is, long-term capital gain assets) in an amount equal to 30% of your AGI to avoid any capital gains tax on the securities. And then, you could donate 70% of your AGI in cash to public charities.

Bear in mind, though, that accelerating charitable donations to take advantage of this opportunity could be less lucrative if you are in a lower tax bracket than normal this year. The resulting deductions would be worth more in future years when you are in a higher tax bracket (or if you are in the same bracket, but the rates have gone up under a new tax law).

If you are just looking to maximize the value of your usual charitable deductions, and you itemize deductions on your tax return, think about “bunching” your contributions, especially if your income is lower. If you normally make your donations in December, you can push the contributions into January to bunch them with your donations next December and ensure you exceed the standard deduction for 2021. This will allow you to claim the full amount as a charitable deduction. The deduction will be worth more if you are subject to higher tax rates for 2021.

Taxpayers age 70½ or older can make tax-free qualified charitable distributions (QCDs) of up to $100,000 per year from their IRAs to public charities (donor-advised funds are excluded). While QCDs are not deductible like other charitable contributions, they nonetheless have the potential to reduce your tax liability. The QCD amount is excluded from AGI, which may, in turn, increase the benefit of certain itemized deductions and, consequently, lower your tax.

There is a “but,” though, due to the CARES Act’s waiver of annual RMDs for 2020. If you opt to skip your 2020 RMD, it may make more sense to hold off on a QCD until 2021, when it can reduce your taxable RMD and, in turn, your 2021 taxable income.

Source: Unusual Year Steers Year-end Tax Strategies. This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.

Make an Impact!

Click the Donate button at the top of this page or visit our Upcoming Events page to help unite more children in need with the families who are waiting to welcome them home.

In times like these, we’re reminded that “The Gift of Adoption is the opportunity to give forever.”