If 2020 has taught us anything, it’s that the Foodbank is positioned to respond to the needs of our hungry neighbors quickly and efficiently. This year, we’ve distributed nearly 40 million pounds of food – a 42% increase compared to last year.
As those numbers continue to grow, the Foodbank is preparing for 2021 and what continues to be the recovery phase of our COVID-19 response strategy. As you consider your year-end giving options, the Foodbank is prepared and available to make it easy for you. Here are some options to consider for supporting our hunger-relief programs:
$300 Above-the-Line Deduction for Cash Donations
Following special tax law changes made earlier this year, cash donations of up to $300 made before December 31, 2020, are now deductible when people file their taxes in 2021. Under this new change, individuals who do not itemize can claim an “above-the-line” deduction of up to $300 for cash donations made to charities during 2020. Source: Internal Revenue Service, November 2020
IRA Charitable Rollover
The IRA Charitable Rollover allows donors who are age 70 ½ or older to direct a tax-free gift from an IRA to a qualified charity such as the Foodbank.
How does it work?
- You can contribute up to $100,000 from your IRA; If you’re married your spouse is also eligible to contribute up to the same amount from their IRA
- The gift must come directly from the institution holding your IRA to the Foodbank. Our staff are prepared to work with your account holder or financial advisor to ensure a smooth transfer.
Why consider a gift from your IRA?
- Your gift will be immediately put to use, equipping the Foodbank to respond to immediate needs across our 33-county region.
- You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
Donor Advised Funds
Arkansas Foodbank is also eligible to receive contributions from donor advised funds (DAF). If your DAF is held with a local community foundation, or a larger organization like Fidelity Charitable or Schwab Charitable, simply use our EIN (71-0596734) to request a disbursement. Are you interested in making a gift to the Foodbank from your DAF but don’t know where to start? Contact Sarah Riffle, Chief Development Officer, via email or at 501.565.8121 for assistance.
A gift of stock or bonds can be a great way to save on taxes, receive a charitable deduction and most importantly, help feed hungry families in our community. If you’re interested in donating stock to Arkansas Foodbank, please contact Sarah Riffle, Chief Development Officer, for stock transfer instructions via email or by phone at 501.565.8121.
End-of-Year Giving Reminders
Please note that our offices will be open Monday, December 28 through Thursday, December 31 to assist you with your year-end giving. Here are a few other helpful reminders:
- All gifts must be United States Postal Service postmarked December 31, 2020 to be tax deductible for the 2020 calendar year. The postmark must be United States Postal Service, not UPS, FedEx, or any other private courier service. Gifts postmarked January 1 or later, will be counted in the 2021 tax year.
- Hand-delivered gifts for the 2020 tax year will be accepted at our physical location at 4301 W. 65th Street, Little Rock, AR, prior to January 1.
- Gifts to Arkansas Foodbank can easily be made online during the holidays via credit card by visiting our website. It is easy, secure, and you can give until 11:59pm on December 31, 2020 in order for your donation to be tax deductible in 2020.
For any questions about year-end giving during the holidays, please call Arkansas Foodbank staff at 501.565.8121.
No matter the giving route you choose, your gift will have an incredible impact on the lives of those who need access to food. For every dollar given, the Foodbank is able to provide enough food for five nutritious meals. Thank you for offering hope to our neighbors facing hunger.
Please note: This information is provided for informational purposes only and is not intended to serve as professional tax or legal advice. Please consult your financial advisor or a tax/legal professional to determine the best charitable giving strategy for your specific situation.