The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) is designed to help individuals’ families, businesses, and nonprofits facing economic hardship during the coronavirus pandemic.
Some changes in the CARES Act that may affect you and your charitable goals include:
Required Minimum Distribution (RMD) Waiver:
- The CARES Act temporarily suspends the requirements for required minimum distributions (RMD) for the 2020 tax year. Despite the RMD suspension, remember that if you are 70½ or older, you may still wish to use IRA funds to make a qualified charitable deduction (QCD) as a gift from your IRA. Your gift will be put to use today, supporting MHCO in the care provided to Elders in our communities. Your RMD transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
Cash Gifts:
- The CARES Act expands charitable giving incentives and allows individuals who take the standard deduction to make up to $300 of charitable contributions to qualified charities this year. You might think that this is a small amount and would not make a difference. But what if every person gave “just” $300 to the organization of their choice? Such support would have a huge impact on MHCO or other organizations.
- If you do itemize your deductions, the new law allows for cash contributions to qualified charities such as MHCO to be deducted up to 100% of your adjusted gross income (AGI) for the 2020 calendar year.
MHCO is thankful for your continued good will and support during this challenging time. Please contact Chris Moser at cmoser@mhcoliving.org or 419-358-1015 ext. 263 to discuss how your charitable gift can help further our mission.
Additional resources:
– Cash Gifts: https://www.hallrender.com/2020/04/17/charitable-giving-incentives-under-the-cares-act/
– The information on this post is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor.
Photo: Chris Moser, Director of Resource Development and Church Relations. Photographer: Jennifer Yost (jenniferlyost@icloud.com)