CARES Act

The 2020 CARES Act provides incentives for charitable giving, which have been recently modified and extended by the 2021 Consolidated Appropriations Act.

The 2021 Consolidated Appropriations Act—the $2.3 trillion spending bill signed into law on December 27, 2020—modifies and extends several provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was signed into law on March 27, 2020. Multiple incentives were included in the CARES Act to help businesses, nonprofits, and employees whose finances have been thrown into turmoil resulting from the recent decline of economic activity. There were also several provisions in the Act that affect charitable giving.

In the 2020 CARES Act, taxpayers could take an “above-the-line,” $300 charitable giving deduction for taxpayers who do not itemize their deductions. The $300 limit applied to the tax-filing unit, so married taxpayers—those who file a joint return and do not elect to itemize deductions—could deduct a total of up to $300 in qualified charitable contributions.

With the newly passed Consolidated Appropriation Act, taxpayers who do not itemize their deductions can still deduct $300 in charitable gifts as a single person, but joint filers may now deduct up to $600. This deduction is still above-the-line and will reduce taxable income. It should be noted, though, that the Section 6662 penalty for taxpayers who overstate the deduction has increased from 20% to 50% of the underpayment.

2018 tax data indicates almost 90% of taxpayers claim the standard deduction. If you are part of the 10% who itemizes your deductions, you are still eligible for traditional giving opportunities, such as donating cash and appreciated securities. In addition to cash contributions, itemizers can also deduct the fair market value of donated property. Gifts are limited to 100% of their adjusted gross income (AGI) to charity. The limit was raised to 100% of AGI for 2021, temporarily lifting the typical 60% limitation.

Like under the CARES Act, both the above-the-line deduction and the increased limitations for charitable giving under the 2021 Consolidated Appropriation Act require the contribution to be made in cash and to a public charity or foundation described in Section 170(b)(1)(A). It does not apply to donations to a donor-advised fund.

Gifts to the Diplomacy Center Foundation in support of the National Museum of American Diplomacy at the US Department of State enable us to highlight the role of diplomacy in American history and the diplomatic community's impactful careers in a compelling and inviting museum. While our offices are closed, we continue to fulfill our mission to create the first museum dedicated to American diplomacy. Your support is appreciated now more than ever. We hope you consider donating $300, $600, or more to help us realize this goal.

For more information about how you can contribute to the Diplomacy Center Foundation or to learn about other opportunities to support the National Museum of American Diplomacy, please contact us at [email protected].

Last updated: February 17, 2021. Please consult your financial advisor about any tax-related giving incentives.

Setting up a legacy gift to the Diplomacy Center Foundation is an inspiring endeavor to memorialize your support for the National Museum of American Diplomacy (NMAD). Legacy gifts offer flexibility to donors while ensuring that future generations can discover the history, practice, and challenges of American diplomacy.

Legacy gifts can support a range of endeavors with NMAD and the Diplomacy Center Foundation. Your gift could support a program series on a particular topic, an endowed scholarship for someone to gain work experience, sponsorship for an exhibit for display in the Museum, or securing a specific artifact. Our staff can help you explore how NMAD can recognize your life experiences, diplomatic service, or professional accomplishments through your gift.

While the most common forms of donations to the Foundation are securities and cash, legacy gifts offer a unique layer of flexibility as a donor. If your current financial situation is uncertain, legacy or estate gifts are an easy way to contribute to the Foundation and its mission to support NMAD. Legacy gifts may be funded in several different ways, including appreciated securities, cash, or real estate.

Legacy gifts are also easy to complete, requiring as little as one sentence to your will or living trust to secure your support. Your financial advisor or lawyer can include language in your will or estate trust to specify how a gift to the Diplomacy Center Foundation should fulfill and recognize your charitable intent.

We encourage you to discuss your ideas with a financial or tax advisor before making any planned gift. You can also contact our staff to discuss different options for including the Diplomacy Center Foundation in our will or estate planning at (202) 408-1007 or [email protected].

If you do intend to include the Diplomacy Center Foundation in your plans, please use our legal name and federal tax ID.

Legal Name: Diplomacy Center Foundation
Address: 1990 K Street NW Suite 315, Washington, DC 20006-1147
Tax ID: 51-0398806

We hope you will join our growing list of supporters to recognize the history, practice, and importance of American diplomacy at the National Museum of American Diplomacy. By contributing to the Diplomacy Center Foundation, together we will create a vibrant museum that inspires and informs future visitors about the role of diplomacy in achieving US security and prosperity.

One opportunity to further the impact of your gift for the Museum is to match your annual gifts with contributions from your employer. Your employer may sponsor a matching gift program that will match, double, or–in some instances–more than double your charitable contribution to the Diplomacy Center Foundation. Annual gifts matched by employer contributions will help progress our campaign goal to build a robust, vibrant museum. Your company's personnel or human resources office can provide the information needed to obtain a matching corporate gift.

Matching gifts are also a creative fundraising option for a campaign to honor an individual, event, endowed scholarship, or another fundraising goal. You or a like-minded group, as the lead donor(s), pledge to donate to the Diplomatic Center Foundation a specified amount if the potential gift is matched 1:1 or 2:1 by other donors. These gifts could underwrite exhibits, educational programs, a scholarship, or a speaker series recognizing the group of donors who provided the supporting gifts.

The Foundation staff welcomes the opportunity to explore how a matching gift can maximize your support. For more information on matching gift opportunities, please contact the Diplomacy Center Foundation at [email protected].

Last updated: September 24, 2020. Please consult your financial advisor about any tax-related giving incentives.

There is no greater satisfaction than donating time, talents, or financial support to a charity that is important to you. Through the National Museum of American Diplomacy (NMAD), the Diplomacy Center Foundation is creating a permanent testimony to the role of diplomacy in US history and the value of the individuals who advance American prosperity and security. We need your financial support to complete the Museum.

Fortunately, making a qualified charitable distribution (QCD) from your individual retirement account (IRA) is one way a charitably minded donor can support the Foundation in reaching its capital campaign goal while providing tax benefits.

Suppose you have retirement funds in an IRA and will be 72 or older in 2021. In that case, the Internal Revenue Service (IRS) requires you to withdraw funds from your IRA in statutorily mandated annual increments known as required minimum distributions (RMDs). While the IRS suspended this obligation in 2020, it was reinstated in 2021. RMDs are subject to ordinary income taxes, which may push you into a higher tax bracket, affect your Social Security income, or increase Medicare premiums.

QCDs are withdrawn from IRAs without tax consequences—the charitable donation is excluded from taxable income altogether. If you make an RMD from an IRA, a QCD reduces the amount reported as income on page 1 of IRS Form 1040. In addition to reducing taxable income, your gift supports the endeavors of the National Museum of American Diplomacy at the US Department of State.

There are a few formalities that prospective QCD donors must meet:

• The IRA account owner must be 70 1/2 or older on the date the funds are withdrawn from the IRA;
• The maximum dollar amount of a QCD is limited to $100,000 per-taxpayer per year;
• The distribution must go directly to a qualified 501 (c) 3 charity; and
• The charity should cash the check before December 31 for the year in which the contribution was made.

Gifts to the Diplomacy Center Foundation enable us to share the story of American diplomacy and honor the legacy of our diplomatic corps in a compelling and inviting museum. The Foundation’s staff are happy to work with you to explore how we can maximize the impact of your philanthropic giving. Please contact us for more information about qualified charitable distributions or other opportunities to support the National Museum of American Diplomacy.

Last updated: January 25, 2021. Please consult your financial advisor about any tax-related giving incentives.

Donor-advised funds provide a flexible giving opportunity for all types of donors: donors beginning to think about charitable giving, those who have already set up a personal roadmap for gift-giving, and even those who have charitable giving in their estate plans. The versatility of donor-advised funds means they can serve as a personal charitable savings account for individuals.

Donor-advised funds are charities set up by investment firms* that accept most types of donations. The funds you invest in a donor-advised fund can appreciate, increasing funds for future donations.

When contributing to a donor-advised fund, it is easier to give 100 shares of appreciated securities to redistribute in smaller amounts to multiple charities. The full amount of a contribution to a donor-advised fund may be tax-deductible in the year it is deposited in the account. You may decide later which charities will be the ultimate beneficiaries.

Donor-advised funds also help with tax planning. Contributions to a donor-advised fund, coupled with the maximum allowable deduction for state and local income and property taxes, may enable you to itemize deductions on IRS Form 1040. Individuals in higher tax brackets might maximize contributions to a donor-advised fund to remain under the threshold of a higher tax rate. Appreciated securities may be donated, both avoiding capital gains taxes and enabling a charitable donation.

Donor-advised funds are popular with donors to the Diplomacy Center Foundation. Approximately one-third of our annual fund contributions are by donors using a donor-advised fund. The Diplomacy Center Foundation accepts contributions both directly and via a donor-advised fund.

Please contact the Diplomacy Center Foundation at [email protected] for further information on ways to support us and the National Museum of American Diplomacy.

* Each firm has different rules, procedures (and fees), so investigate carefully before choosing a fiduciary.

Last updated: June 16, 2021. Please consult your financial advisor about any tax-related giving incentives.

When deciding to make a charitable contribution, your first inclination may be to donate cash. But have you ever considered donating appreciated cash assets instead, such as a publicly traded security? Gifts of appreciated securities—or stock donations—are a popular option for donors wishing to contribute to the Diplomacy Center Foundation’s campaign to complete the National Museum of American Diplomacy (NMAD). According to the Federal Reserve Q3 2020 Financial Accounts of the United States, 89% of US household wealth is in non-cash assets, which means contributions of donated securities may be more accessible for many donors.

In recent years, many investment portfolios have increased in value to the point where now may be a good time to consider donating appreciated shares for a charitable purpose. If your assets have appreciated, it is usually best to contribute the securities directly to the charitable organization instead of selling the securities to generate cash for a donation. Contributing the securities directly to a charitable organization increases the impact and value of your gift, as the security can continue to appreciate. The S&P 500 Index has grown 93%, or nearly doubled, over the past five years. Apple, the security most donated to DCF, has appreciated 384% over a similar period (price as of April 14, 2021). This, in turn, increases the impact of your original contribution.

As a complement to your investment in NMAD’s success, donating appreciated securities to DCF offers gift planning opportunities that may have tax or estate planning advantages. Contributing securities directly to DCF increases the amount of your tax deduction. Donating appreciated securities held for more than one year also qualifies you for a charitable deduction for the stock’s fair market value without regard to the stock's initial cost. There is no tax on the appreciated amount.

If you have accumulated the holding over an extended period, you may consider donating the shares that have the lowest cost basis. This transaction might mitigate investment risk if the security has grown to an outsized portion of your investment portfolio. If you purchase an equivalent number of shares to replace those donated, this will wipe out a potential capital gains tax while maintaining your position in a preferred investment. You might consider funding the purchase by selling an investment that has lost value, which would then create a possible capital loss deduction.

If you itemize deductions on your tax return instead of taking the standard deduction, donating these assets can unlock additional funds for charitable giving in two ways. First, you potentially eliminate the capital gains tax you would incur if you sold the assets yourself and donated the proceeds. This may increase the amount available for charity by up to 20%. Second, you may claim a fair market value charitable deduction for the tax year in which the gift is made and may choose to pass on that savings in the form of more giving.

One rule to remember is that the deduction is limited to 30% of your adjusted gross income (AGI). If you cannot use the entire donation deduction this year, you can still carry forward unused deductions for five years. If you plan a significant contribution that is close to or exceeds these AGI limits, you should first contact a tax professional.

We encourage you to discuss your ideas for support with a financial or tax advisor before making any gift. For more information on how to donate appreciated securities, please contact us.

Last updated: May 12, 2021. Please consult your financial advisor about any tax-related giving incentives.

From travel to trade, American diplomacy has built bridges from the United States to others around the world. Your donation during the 2021 Combined Federal Campaign (CFC #30585) will help the National Museum of American Diplomacy (NMAD) tell the story of those who foster a global community and open the door to a safer, more prosperous, and culturally rich world.

The Diplomacy Center Foundation is the nonprofit partner for NMAD—the first museum dedicated to exploring the value and power of our nation’s diplomatic relations and to showcasing the strength, dedication, and ingenuity of our diplomatic community. While federal appropriations provide NMAD’s operating budget, private donations like yours allow for the development, fabrication, and installation of permanent exhibits and programs.

The Combined Federal Campaign (CFC), overseen by the Office of Personnel Management, is one of the world's largest and most successful annual workplace charity campaigns, with 36 CFC zones throughout the country and overseas raising millions of dollars each year. With more than $8.5 billion raised since 1961, the 2021 campaign commemorates 60 years of giving by the federal community. Each fall, federal civilian, military, and postal employees and retirees pledge funds and volunteer hours to help those in need locally, across the nation, and throughout the world. If you are not a federal employee and wish to support our campaign to complete NMAD, we accept donations anytime on our website.

How the CFC Works

The CFC’s online pledge portal allows you to easily start and renew your pledge and offers a full range of pledge options:

• Payroll deduction (the most popular option!)
• Credit/debit card
• E-check/bank transfer
• Volunteer hours (federal employees only)

Other options include the CFC Giving Mobile App and other pledge forms.

Are you a Department of State employee? Check out these instructions to start your pledge.

Why Give Through the CFC?

There are a lot of giving options out there. You might be wondering, “Why should I give through the CFC?” Here are just a few of the benefits:

• Give through Payroll Deduction. Designate recurring gifts from each paycheck for a greater impact over time.
• Give to Multiple Charities. Make all of your charitable donations and pledge volunteer hours in one place.
• Give for Collective Impact. The world is a better place when changemakers like you give together.
• More reasons to give through the CFC include tax-deductible giving, unrestricted funds for charities, secure online giving, thousands of vetted charities, and it’s easy to renew.