CARES Act 2020 Charitable Giving Updates
On March 27, President Trump signed the Coronavirus, Aid, Relief, and Economic Security (CARES) Act. The CARES Act includes significant statutory changes to federal law that will impact charitable giving, philanthropic planning, and financial planning. In many ways, the CARES Act enhances the tax benefits of supporting nonprofits like the University of Hartford. Below are some of the main provisions of the CARES Act below but please contact our office and your financial advisor with any additional questions.
Key provisions that may impact your charitable giving in 2020:
- Individuals who do not itemize can now deduct up to $300 for charitable gifts while still taking the standard deduction
- No deduction limitation on cash charitable gifts (up to 100 percent of adjusted gross income) for those who itemize
- An increase of the allowable limit of corporate charitable gifts from 10 percent to 25 percent
Other changes* that may impact your financial and estate planning:
- Temporary elimination of required minimum distributions (RMDs) from retirement plans for 2020
- The temporary elimination of RMDs does NOT change the availability of the Qualified Charitable Distribution (QCD), sometimes also referred to as a “charitable IRA rollover.”
The CARES Act provides additional tax incentives to encourage charitable giving at this important time. However, you have important priorities for your family and loved ones, and we know that their health and financial well-being comes first.
When you are ready, we will be here to help you shape a charitable gift plan that suits your needs and allows you to keep supporting the University of Hartford’s mission. For more information about gift planning options, please contact me at 860.768.2405 or devivo@hartford.edu.
*Note: This is a partial list, please consult your professional advisors.