Year End Giving Tips 2020
Thank you for partnering with Guiding Eyes for the Blind through your generous support. As the end of the year approaches, please consider the following gift options — they may be an excellent way for you to further our work! And read on for information on how the new CARES Act might provide some tax benefits to you!
2020 Tax Incentives under the CARES Act
The CARES (Coronavirus Aid, Relief, and Economic Security) Act was passed by Congress earlier this year to assist individuals, businesses and nonprofits facing economic hardship during the coronavirus pandemic. Below are a few key provisions of the CARES Act that may apply to you and help you further your charitable goals.
- The CARES Act allows taxpayers to claim a charitable deduction of up to $300 for those who take the standard deduction. Even if you do not itemize deductions, you can still receive a tax benefit for your contribution to Guiding Eyes and/or other favorite charities.
- If you itemize your deductions, the new law allows for cash contributions to qualified charities such as Guiding Eyes to be deducted up to 100% of your adjusted gross income for the 2020 calendar year.
The CARES Act and Retirement Accounts
Required Minimum Distributions Suspended
The new law suspends the requirements for required minimum distributions from most retirement accounts for the 2020 tax year only. Many of our donors have decided to make an “IRA Charitable Rollover” gift in 2020 despite the temporary reprieve. If you are 70½ or older, you can make a gift from your Individual Retirement Account (IRA) this year. (See the “IRA Charitable Rollover” section below for more details.)
Why a Gift from Your IRA May Still Be a Good Idea
Your gift will be put to use now rather than later, allowing you to see the difference your donation is making.
- You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
- Since the gift does not count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.
Gifts of Appreciated Securities
For many of our supporters, it makes tax sense to contribute appreciated securities (stocks, bonds and mutual funds) to Guiding Eyes. Gifts of securities owned more than a year that have grown in value over the original cost are deductible at full fair market value, just like a gift by check. Also, capital gains tax on the built-up value of the securities is avoided.
IRA Charitable Rollover
A tax incentive known as the IRA Charitable Rollover (also known as a “Qualified Charitable Distribution”) enables our friends who are 70 ½ or over to support Guiding Eyes through a tax-free withdrawal of any amount up to $100,000 from an IRA if the withdrawal is transferred directly to our organization.
Please click here for frequently asked questions or contact Gail Resnikoff, Director of Planned Giving, at 914-234-2237 for more information.
To explore other means to support the Guiding Eyes mission, please visit More Ways to Give.
The foregoing is intended to convey general information only. It does not constitute tax, legal or financial advice and should not be relied upon as such. We strongly suggest that you consult with your professional advisor(s) regarding your charitable gift planning and its implications.