Do you know these tax advantages for charitable giving in 2020?
On March 27, 2020, the United States House and Senate passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The CARES Act created several ways to help nonprofits based in the USA, like Friends General Conference, and provide important tax incentives for people making charitable donations by December 31, 2020.
Charitable Deduction: Not itemizing on your 2020 tax return? You will be able to take a charitable gift deduction of up to $300 for cash gifts made in 2020. This deduction does not apply to a donor advised fund and supporting organizations.
100% Charitable Deduction Limit: The usual deduction limit for cash gifts to public charities is 60% of adjusted gross income (AGI). For 2020, gifts of cash to charity (excluding donor advised funds and supporting organizations) are deductible to 100% of AGI. The gift may be for any charitable purpose and is not limited to gifts for Coronavirus relief.
Required Minimum Distribution (RMD) Waiver: The RMD is waived for IRA and other qualified retirement plan owners for the year 2020. This provision will permit IRA and other qualified retirement plan owners to retain funds in their IRAs. Because the markets declined substantially after the current RMD was calculated based on the plan value on December 31, 2019, Congress determined that it was beneficial to waive the RMD for 2020. Donors may still wish to use IRA funds to make a tax-free transfer in 2020 to help reduce future RMDs.
You can read more about the CARES Act and charitable giving on the Everence financial services website.
When you contribute to FGC, you are contributing to ministries that make an impact on the lives of people. If you are able, please make a gift today to support vibrant Quaker community!
This article originally appeared in the November/December 2020 issue of Vital Friends, FGC’s monthly eNewsletter.