We have only one week left in 2020, a remarkable year that hit us with surprises and painful disease. We lost jobs, got sick, and even died due to COVID-19.
But the year had its bright spots too.
One of them was the extraordinary efforts by all the front-line medical professionals and other essential workers who risked their own health to serve us.
Another is the amazing generosity that poured out from members of our community to help those in need.
A third was the extraordinary efforts of our nonprofit sector that rose to meet many challenges with fewer resources.
As the year draws to a close, there are a few days remaining when you might consider gifts to those very nonprofits which performed so well for us all.
Our tax policy rewards those who make charitable donations by allowing donors to reduce their taxable income and save on taxes.
But there is a hard deadline of Dec. 31 for taking advantage of some good ideas for 2020.
Here are a few of those ideas:
• Taxpayers who do not itemize deductions are entitled to reduce their taxable income by up to $300 by simply making gifts before the end of the year to qualified charities.
• If you do itemize your deductions and want to donate at least $10,000 but are not yet ready to decide which organizations you want to support, you can establish a donor-advised fund and benefit from the tax deduction this year, while deciding later how to allocate your gift.
• Those with IRAs who are at least 70½ can make gifts to charities (up to $100,000) directly from an IRA and the distribution comes out tax-free instead of taxable. Be careful, however, as 2020 is a year in which there is no required minimum distribution and the age for starting RMDs has been extended to 72.
• For 2020 only (thanks to the CARES Act), donors are permitted to deduct charitable gifts equal to 100 percent of their adjusted gross income (compared to the usual 60 percent for cash gifts and 30 percent for gifts of appreciated stock).
• Speaking of appreciated stock, this week may be a good time to donate highly appreciated stock (owned for at least one year) and save having to pay capital gains tax. But you will need to get any transfer in motion quickly as the year is running to its end.
• A charitable gift annuity is another way to generate a tax deduction in 2020 while securing a fixed annual income. At death, the funds in the annuity go to your designated charity. The charitable deduction is relatively high right now as interest rates used to calculate the amount of the deduction are very low.
Please consult your own tax advisers for specifics on these ideas.
Regardless of whether tax considerations are important to you, this is a great time to show your appreciation for those nonprofits in our community that work tirelessly to help us and our neighbors.
Donating today and supporting those organizations would be a very nice way to say thanks for being there for us.
The Community Foundation of Otsego County is here to help you invest in your community. For additional information, contact us a firstname.lastname@example.org.
You know, of course:
Creativity is making something out of nothing.
Or, better, recognizing potential where nobody else does.
The scoop in last week’s paper is a case in point: A group calling itself The Market Street Alliance is proposing a distillery in the former Oneonta Ford building, that dreary, long-empty, black-painted hulk at the foot of Chestnut Street, across from Foothills.
But that’s just the beginning: The idea is to make it a centerpiece for a downtown Oneonta transformed into a beverage center, with breweries, wineries, even mead-makers. (Yes, mead, that honey-based brew quaffed by King Hrothgar and his knights.)
The local CPA and investor in the prospective distillery, Johna Peachin, got the idea from a visit to her son in Walla Walla, Wash., where she participated in a
monthly Sip & Stroll event.
At the Walla Walla – “twice as nice,” promoters say – Downtown Foundation, Events Manager Cindy Frost says her region is
being marketed these days as
“The New Napa Valley.”
There are over 100 wineries in the Walla Walla valley, and three-dozen wineries have tasting rooms in the downtown, attracting top-tier restaurants and hotels there.
Last summer, the foundation came up with the idea of the Sip & Stroll, which has just finished its second May-to-September season.
One evening a month, the wineries waive the fee on their tastings, and about 100 people have been buying $10 tickets to partake. Many participants, of course, then buy a glass or two, shop, dine, etc., making it worthwhile for the downtown establishments.
The evening’s a magnet, which is what every downtown wants.
The $1,000 revenue is used to promote the event, Frost said.
Peachin said she and fellow investors have a sales agreement with the Twelve Tribes, the religious community that owns the adjacent Yellow Deli.
She mentioned Ken Wortz, an owner of Kymar Distillery in Charlotteville, Delaware County, as an investor. And landlord Brian Shaughnessy and businessman Al Rubin accompanied her to the July 26 Otsego Now meeting where the original pitch was made.
The timeliness may not be great – just a few days before this news broke, Peachin had exploded negotiations between the Town of Oneonta Fire District and City Hall. City officials may not be too interested in accommodating her right now.
Still, the idea is intriguing.
Hold on a minute.
As outlined on this week’s front page, City Hall and the DRI (the state’s Downtown Revitalization Initiative), see the Oneonta Ford site as THE prime prospect for Artspace.
Artspace is that Minneapolis-based national entity that has been creating combinations of housing and studio space for artists across the nation since 1987. (Check www.artspace.org; very exciting.)
The colleges are active partners, seeing Artspace as a way to attract students; City Hall, as a way to keep them here after graduation. Doesn’t downtown Oneonta as an art magnet sounds much more enticing than Oneonta as a beer and liquor magnet, which, to a degree, it already is?
Oneonta Mayor Gary Herzig low-keys it: It’s the preferred site, but if the Twelve Tribes has another deal, the DRI, the most exciting news for the City of the Hills in a century, will just look somewhere else.
Come on. Are we serious or aren’t we? The state has already committed $3.5 million to cleaning up the Oneonta Ford property and building something new there, with more – likely – to come.
Enough dithering. Common Council should man and woman up, condemn what’s been an eyesore and a hazard for decades, pay the fair market value, and get started.
The Peachin group may make it work; but it may not.
If it doesn’t, the site could be locked up for decades to come. Our great-grandchildren will be seeing the same mess we are today, only moreso. Does anyone want that?
If Peachin’s creativity spurs City Hall – finally – into action, she certainly will deserve the community’s thanks and