Three Ways of Thoughtful Giving in 2020
If 2020 has taught us anything at the Maryland Food Bank, it’s all about being agile and innovative. Like other nonprofit and for-profit organizations, we had to pivot and adapt to the changing landscape of the COVID-19 pandemic so that we could continue delivering on our mission. This meant learning new ways to distribute food, connect with clients, and utilize data to determine how we can make the most impact.
A significant part of our ability to meet the increased need for support is due to the financial contributions we have received this year. The outpouring of charitable gifts has been humbling, and we are grateful for the generosity of our donors. As we look ahead to the next year, we know the need for food assistance will remain high and therefore, so will the food bank’s need for philanthropic support.
We know all too well that resources can be limited, which is why we’ve compiled a list of creative and thoughtful ways you can continue to support our mission as we approach the holiday season. These are excellent and thoughtful ways to make an impact without an immediate cash outlay, and they even include some tax benefits!
Did you know the Maryland Food Bank is equipped to receive charitable contributions via different giving vehicles such as Donor Advised Funds, Appreciated Securities, and IRA Distributions? A summary of how to make a thoughtful charitable gift through one of these mechanisms is listed below.
Donor Advised Funds
A Donor Advised Fund (DAF) is a charitable investment account that reduces taxable income. By making a large charitable donation (e.g., cash, stocks, or other assets) to a DAF, a donor can claim the itemized deduction during the year it was made. The DAF can grow tax-free, and contributions can be made to a qualified nonprofit, like the food bank, quickly and easily.
Gifting appreciated stock is a great way to avoid capital gains taxes and reduce taxable income by making a larger-than-usual charitable donation. The stock market has seen its ups and downs this year and gifting stock may be the best strategy to make a significant donation before year end.
Qualified Charitable Distribution (IRA distribution)
This is a direct transfer of funds from an IRA custodian, payable to a qualified charity. For people 70 ½ years of age or older they can fulfill the required minimum distribution (RMD) without having to pay income tax on the withdrawal. To count toward the RMD, these contributions must be made by December 31.
To stay up-to-date on the impact of philanthropic support on food-insecure Marylanders, please bookmark our COVID-19 Response page.
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