Don’t miss the opportunity to make a cash gift in 2020! Your gift will have a greater impact for both you and Hill-Stead as the CARES Act’s time-limited tax provisions come to a close in 2020. Here are the top five highlights from the Coronavirus Aid, Relief, and Economic Security Act for your consideration:
1For 2020 Only, the Limitation on Cash Gifts to Public Charities Is Eliminated. Consider using the 100% AGI limit for charitable deductions if you received a windfall or sold appreciated assets or a business in 2020 and face a large capital gains tax in 2020.
2Establish a Charitable Gift Annuity. Create life income for yourself or your loved ones by establishing a charitable gift annuity with cash and using the 100% adjusted gross income (AGI) limitation. Earn income for yourself or beneficiaries when you create a Charitable Gift Annuity (CGA) or Charitable Remainder Trust (CRT) to benefit Hill-Stead.
3More Flexibility in Charitable Giving Using IRAs. Explore more flexibility in charitable giving for IRAs. Suppose you or family members are 70½ or older with an individual retirement account (IRA). In that case, you can make a tax-free gift, i.e., a qualified charitable distribution, from your IRA.
4Establish a “stretch IRA.” Direct retirement funds to a testamentary charitable remainder trust or charitable gift annuity.
5Non-itemizers Eligible for $300 Charitable Deduction. Use the $300 above-the-line tax reduction if you do not itemize on your tax return.
Additional Tax-Efficient Giving Options
Donor-advised funds (DAF): a philanthropic giving vehicle that provides an immediate tax benefit to you and allows you to grant funds to Hill-Stead. Give through your donor-advised fund to maximize your impact. Your fund sponsor handles all record-keeping, disbursements, and tax receipts.
Stocks or Securities: Make a gift of stock or securities to support Hill-Stead and avoid capital gains tax on your stock’s appreciation. Stocks, mutual funds, bonds, or any other publicly traded securities can be transferred as gifts.
Please note that cash gifts include money, checks mailed by the end of 2020, and credit card donations. Other forms of cash giving include paying a charity’s debt and unreimbursed volunteer expenses.
*The above information is not intended as legal or financial advice. Please consult professional advisers to discuss your specific situation.