The CARES Act is helping donors like you make an even greater impact!
2020 charitable giving got a boost with the new CARES act. If you don’t itemize, you can take up to a $300 deduction for a single taxpayer, and $600 for married couples. This is an “above the line” adjustment to income that will reduce a donor’s adjusted gross income (AGI), and thereby reduce taxable income.
Also part of the bill, individuals and corporations that itemize can deduct up to 100% of their 2020 AGI, up from 60% previously. Corporations may deduct up to 25% of taxable income, up from the previous limit of 10%.
Required minimum distributions (RMD) that would have had to start in 2020 do not have to start until 2021, including distributions from defined benefit pension plans and 457 plans. However, if you choose to make a qualified distribution this year, you can direct up to a $100,000 donation from your IRA in a tax efficient manner.
For more details, consult with your financial professional.
P.S. To read more about planned giving or other unique giving opportunities without writing a check, look at these other articles by Chief Development Officer, Marla Svoboda.
A Strong Finish With Year-End Giving
Questions about giving?
Please feel free to reach out to Marla Svoboda, Chief Development Officer at marla@rosebrooks.org or call 816-605-7110.