As the end of the year fast approaches, we want to share a few key dates and new 2020 charitable giving benefits to consider.
2020 Year-End Grants from Your Donor Advised Fund
- The turnaround time from receipt of grant recommendations to issuance of a check is approximately two (2) weeks.
- Grant recommendations should be made in the Donor Portal by December 14, 2020 to facilitate issuing grant checks prior to year-end.
- Timing of grants does not impact charitable income tax donations, potential charitable deductions occur when contributions are made to a CFSA fund.
- If the grant needs to be counted for a year-end match, please contact CFSA as soon as possible by calling 520-770-0800 or sending an email to firstname.lastname@example.org.
Charitable Giving Benefits in the CARES Act
Recognizing the vital role that that nonprofit organizations play in every community, the Federal CARES Act has several provisions for both individual and corporate donors to encourage charitable giving.
New $300 Deduction for Qualified Charitable Donations
Individuals who take the standard deduction can now claim an above-the-line tax deduction for cash donations up to $300 to qualified charitable organizations.
Corporations’ Limit Increased to 25% for 2020
For the 2020 tax year, corporations can deduct up to 25% of the taxpayer’s taxable income for any cash contributions made to qualified charitable organizations. Deductions for cash donations were previously limited to 10% of the taxpayer’s taxable income.
60% of AGI Limit Suspended for 2020
The usual deduction limit for cash gifts to public charities is 60% of adjusted gross income (AGI). For the 2020 tax year, individuals can deduct cash contributions made to qualified charitable organizations up to 100% of their adjusted gross income. Gifts may be for any charitable purpose and are not limited to gifts for COVID-19 relief efforts.
If you need help determining how to best support local relief efforts, please don’t hesitate to call or email our team. You can reach us at 520-770-0800 or by email at email@example.com.
2020 Year-End Gifts Dates + Deadlines
- Checks sent via the U.S. Postal Service to CFSA must be postmarked on or before December 31, 2020.
- Checks sent via carriers such as FedEx, UPS, and DHL must be physically received on or before December 31, 2020.
- Online contributions via may be made until December 31, 2020.
- Wire transfers of cash must be initiated no later than December 28, 2020.
- Gifts of appreciated stock should be made by December 23, 2020. Please contact the CFSA Finance Team as soon as possible for specific transfer instructions.
- Gifts of mutual funds should be made by December 17, 2020. Please contact the CFSA Finance Team as soon as possible for specific transfer instructions.
- To make a qualified charitable distribution from your IRA, we recommend starting the process as soon as possible to ensure that your gift is received by CFSA on or before December 31, 2020. Please note, IRA Distributions cannot be contributed to a donor advised fund or a supporting organization.
2020 IRA Distributions
Retirement accounts provide a special opportunity to make gifts to non-profit charitable organizations. When you reach age 70.5, you’re required to withdraw a certain amount of money from your retirement accounts each year. That amount is called a required minimum distribution and will count towards your total taxable income for the year unless it is designated for a nonprofit organization.
Because the markets declined substantially after the current RMD was calculated on December 31, 2019, Congress determined that it was beneficial to waive the RMD for 2020. However, donors can still choose to use IRA funds to make a qualified charitable distribution.
To discuss your situation and options available for you, please contact Mary Louise Luna, Senior Director of Gift Planning at firstname.lastname@example.org.