On March 27, 2020, the U.S. House and Senate passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. There are 3 big changes that you should be aware of. As always, we recommend that you talk to your tax professional for more information.
Cash Gifts – Individuals may deduct $300 above-the-line. This charitable deduction enables a taxpayer who is one of the 90% who take the standard deduction to also benefit from their charitable giving. The $300 above-the-line deduction must be gifts of cash by a non-itemizer, and may not be to a donor-advised fund or supporting organization. Now is a perfect time to take advantage of this opportunity that can help Heading Home and other charities continue with their important work during this critical time.
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.
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. Loyal supporters may still wish to use IRA funds to make a qualified charitable distribution (QCD). And the QCD is available up to $100,000 for individuals who are over age 70½.
And remember, we gladly accept gifts of stock and securities as well! Just visit www.headinghome.org/donate or reach out to Advancement Director Cindy Ortega at CindyO@headinghome.org to get started!
