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CARES Act Tax Incentives for Giving in 2020

Posted December 9, 2020-
As you are considering your year-end giving, there are tax advantages specific to 2020 that will benefit your giving this year:

Tax Deduction for Gifts Up to $300

The CARES Act expands charitable giving incentives and allows taxpayers to claim up to $300 of charitable contributions to qualified charities this year as a deduction from their gross income, even if they take the standard deduction on their tax return. In previous years, only taxpayers who contributed more than the standard deduction of $10,000 could claim the amount over $10,000 as a deduction.

Temporary Suspension of Limits on Charitable Contributions

The amount of charitable cash contributions taxpayers could deduct as an itemized deduction was typically limited to 60% of the taxpayer’s adjusted gross income (AGI). That means that donors who made large gifts could deduct the value of that gift only up to 60% of their adjusted growth income. This year, that limit has been lifted, and individuals may deduct qualified contributions of up to 100% of their adjusted gross income. Corporations can deduct up to 25% of taxable income, up from the previous limit of 10%.  Note that cash gifts to donor advised funds do not qualify for this provision.

Required Minimum Distributions Suspended

The new law temporarily suspends the requirements for required minimum distributions (RMD) for the 2020 tax year. While this may be a relief to those who would prefer not to withdraw from their retirement accounts, many donors use their RMD to make a gift from their IRA. Despite the RMD suspension, remember that if you are 70½ or older, you can still choose to make a gift from your IRA and lower your taxable income by the amount that you give.

There are three convenient ways to give:

  1. Donate online at esj.org/give-to-the-episcopal-fund/

  2. Mail a check to Episcopal using the enclosed envelope. The envelope must be postmarked on or before  December 31, 2020.

  3. Transfer appreciated stock. Please have your financial manager follow these steps:

  4. Contact one of our UBS account managers, Franklin Beard at [email protected] or Buck Williams at [email protected] to notify them of the pending transfer.

  5. Your financial manager should provide your name, the description of the security, number of shares and the designation of your gift to The Episcopal Fund.

  6. Your financial manager will need the following details:

UBS Financial Services

DTC #0221

For the benefit of Episcopal School of Jacksonville

Account number V5 71786