United Way of
Massachusetts Bay

Tax Efficient Ways to Give This Holiday Season

The holidays are here and, for all of us, this year looks different than any before. But for many, it may mean no holidays at all as 1 million people across the state struggle with food insecurity and hundreds of thousands face eviction. 

Donor generosity this year has made it possible for us to distribute over $8 million to more than 300,000 vulnerable people impacted by the COVID-19 pandemic. But so much more will be needed to help our neighbors recover from this crisis. 

This holiday season in Massachusetts:

  • Unemployment has skyrocketed with 330,000 people jobless across the state.
  • 1 in 8 residents and 25% of Black and Latinx residents are experiencing food insecurity.
  • 60,000+ families are at risk of eviction because of the unprecedented numbers of renters and homeowners falling behind on their payments.
  • More than 270 childcare centers have been forced to close, leaving 46,000 children without licensed programs.
  • 59% of afterschool providers are unsure if their programs will be able to reopen after the pandemic.

We need to act now to empower all of our neighbors to emerge stronger and more resilient for the future – our communities can’t wait. Your support is a win-win for you and the community as we offer several tax-efficient ways that you can support United Way. 

TAX EFFICIENT WAYS TO GIVE

  1. Recommend a distribution through your Donor Advised Fund.
  2. Make a charitable contribution up to $100,000 from your Individual Retirement Account (IRA) directly to United Way (EIN: 04-2382233). The direct distribution to charity would not be included in your taxable income. 
  3. Give a gift of stock or securities, which has the double tax benefit of not having to pay capital gains tax on the appreciated value, while getting a full deduction for the fair-market-value of the appreciated gift.

HELP COMMUNITIES RECOVER, CREATE HOUSING AND GET A 50% STATE TAX CREDIT 

This is the power of the Community Investment Tax Credit. It provides donors — individuals, companies, and foundations — a 50% state tax credit that fuels the work of more than 30 Community Development Corporations (CDC’s) across Massachusetts.

Whether it is helping small businesses recover from the impact of Covid-19, stabilizing neighborhoods or providing food or emergency financial assistance to individuals and families who have lost income, CDCs respond to the health crisis and the economic repercussions that reverberate throughout their communities.

The CITC helps CDCs to build the necessary internal capacity to add and expand their programs and services, increase their community engagement, and leverage additional public and private funding to do their work. Together, we can empower our communities to recover and rebuild, more equitable and resilient than ever. 

Giving Under the CARES Act

Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, donors can further their impact through a cash gift to United Way or other qualified charities by December 31, 2020. Donors who take the standard deduction may deduct up to $300 in qualified charitable contributions of cash to United Way and other qualified charities, which is not normally permitted. Donors who itemize may deduct cash gifts to United Way up to 100 percent of their adjusted gross income in 2020—up from 60 percent. As always, we encourage you to consult with your tax advisor or counsel for advice as you make your plan.

United Way Trusts – An Exclusive Opportunity

United Way and U.S. Charitable Gift Trust, a charitable organization sponsored by Eaton Vance, have partnered to offer a unique opportunity to United Way donors. The United Way Legacy Income Trusts make it possible for donors to support United Way’s mission while providing an income stream for up to two individual beneficiaries. Less restrictive in certain respects than other planned giving options, the United Way Legacy Income Trusts are a turnkey option for younger donors, or those wishing to donate $20,000 or more. For more information on the United Way Trust, please contact Janet Collins at jcollins@supportunitedway.org.

As our neighbors grapple with skyrocketing rates of unemployment, food insecurity, and evictions, the vision of a more equitable tomorrow has never been more urgent. Thank you for supporting United Way and helping to reimagine and rebuild our communities.

GIVE TODAY