The CARES Act

Information Regarding Charitable Giving

The CARES Act is a recently passed piece of legislation signed into law seeking to address the economic issues created by the COVID-19 Pandemic. Among the law’s many provisions are several that affect charitable giving. For those considering charitable contributions at this time, the following summary is provided for your reference.

Universal Charitable Deduction

For donors that do not itemize their tax returns, the recently passed CARES Act now provides a 2020 individual tax deduction of up to $300 ($600 for joint filers) for charitable donations. This, however, does not include gifts to Donor Advised Funds.

AGI Caps on Gifts are Waived

For donors who itemize, and are in a position to do so, charitable gifts can be made to qualified charitable organizations up to 100% of their Adjusted Gross Income (AGI). This waiver does not include gifts made to Donor Advised Funds as well.

IRA Required Minimum Distributions Suspended

For donors 70 ½ years or older, the CARES Act has temporarily suspended Required Minimum Distributions from donors’ IRAs, allowing these funds to recover from recent market downturns. The CARES Act has not affected donors’ opportunity to still make direct gifts from their IRA to charitable organizations of up to $100,000, avoiding tax liability on the distribution.


 

The above statements are provided for informational purposes only and not intended for professional tax, legal or accounting counsel. As always, please consult your licensed professional advisors.

COVID-19 has many students and their families facing an uncertain summer with real financial implications. Your gift will assist these students achieve their dreams. With all of this uncertainty, the best way you can help is by making a gift that will give Wilmington College the flexibility to direct funds to the areas of greatest need.

To make a gift, checks should be sent to Wilmington College, Pyle Center Box 1206, Wilmington, OH 45177. Online gifts can be made at www.wilmington.edu/give.

For more information, visit the website of the U.S. Dept. of the Treasury.