During this time of great uncertainty worldwide, we are both proud of and humbled by the recent outpouring of support from our Raven alumni, parents, and friends. Alumni and friends continue to make charitable gifts to help our students succeed. We appreciate all of you.
Today I would like to share information about legislation that touches on charitable giving.
As you likely know, on March 27, 2020 the U.S. House and Senate passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act is a roughly $2 trillion economic stimulus plan that affects most sectors of the United States economy including charitable giving.
There are three big changes that you should be aware of related to giving:
Cash Gifts – Individuals may deduct $300 above-the-line. This charitable deduction enables a taxpayer who is one of the 90% who take the standard deduction to also benefit from his or her charitable gifts. The $300 above-the-line deduction must be for gifts of cash by a non-itemizer, and may not be to a donor-advised fund or supporting organization.1,2
100% Charitable Deduction Limit – The usual deduction limit for cash gifts to public charities is 60% of adjusted gross income (AGI). For 2020, gifts of cash to charity (excluding donor-advised funds and supporting organizations) are deductible to 100% of AGI. The gift may be for any charitable purpose and is not limited to gifts for Coronavirus relief. 1,2
Required Minimum Distribution (RMD) Waiver – The RMD is waived for IRA and other qualified retirement plan owners for the year 2020. This provision will permit IRA and other qualified retirement plan owners to retain funds in their IRAs. Because the markets declined substantially after the current RMD was calculated based on the plan value on December 31, 2019, Congress determined that it was beneficial to waive the RMD for 2020. Loyal donors may still wish to use IRA funds to make a qualified charitable distribution (QCD). The QCD is available up to $100,000 for individuals who are over age 70. 1,2
As always, please consult your tax advisor/attorney for advice on your specific situation. Thank you for lending a hand during this time of need and for keeping Franklin Pierce’s students in your thoughts.
With Pierce Pride,
P.S. If you are interested in helping us continue to meet the acute needs of our students you may do so here.
Make a donation on our secure online giving page with a credit card.
Crystal Neuhauser, Associate Vice President for University Advancement
Mon - Fri:
8 a.m. - 4:30 p.m.