KILA relies on several sources of revenue to support our projects and initiatives to improve and enhance Kelleys Island. These include membership dues, fund raising activities, and donations. In addition to supporting these projects, your donation to KILA, a 501.c.3 charitable organization, has some tax advantages per IRS regulations.
1. Your donation may be deductible when you itemize expenses.
2. But, if you claim the standard deduction in 2021, you may still claim a deduction, in addition to the standard deduction, of up to $300 per individual or $600 for joint filers. This “special” above the line deduction is NOT applicable for 2022.
3. You may make a Qualified Charitable Distribution (QCD) directly from your IRA to KILA. This direct donation does not count as ordinary income to you as a distribution from your retirement plan usually would. This QCD will count towards your required minimum distribution (RMD) for those of you older than 70.5. However, the limit of the contribution (QCD) is $100,000 per person.
It’s not too late to consider a donation to KILA in 2021.
Please consult with your tax advisor to be sure you understand the tax issues with these donations.