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The CARES Act and You

The new CARES (Coronavirus Aid, Relief, and Economic Security) Act is designed to help you and nonprofits facing economic hardship during the coronavirus pandemic.

Here are a few key provisions of the CARES Act that may affect you and your charitable goals:

Required Minimum Distributions Suspended

The new law temporarily suspends the obligations for IRA required minimum distributions (RMD) for the 2020 tax year. This might come as a relief to many of you who would have had to make a withdrawal from your retirement accounts. Many of our donors use their RMDs to make a gift from their IRAs. Despite the RMD suspension, remember that if you are 70½ or older, you can still make a gift from your IRA or name College of Saint Mary as a beneficiary.

Why a Gift From Your IRA May Still Be a Good Idea

  • Your gift will be put to use today, 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.
     

New Tax Incentives

The CARES Act expands charitable giving incentives and allows taxpayers who take the standard deduction to claim up to $300 of charitable contributions to qualified charities this year. You might think that this is a small amount and that it wouldn’t make a difference. But what if all of our donors gave “just” $300? Such support would have a huge impact on the students at CSM.

For those taxpayers who do itemize their deductions, the new law allows for cash contributions to qualified charities such as College of Saint Mary to be deducted at up to 100% of the taxpayer’s adjusted gross income for the 2020 calendar year.

Finally, corporate giving is encouraged. Qualified cash contributions, previously subject to 1 10% limit, are now subject to a 25% limit. Non-cash contributions will still be limited to 10%.

Your Charitable Goals

We are so very grateful for your continued support of College of Saint Mary, most especially during these difficult times. To discuss how your gift can help the students at College of Saint Mary, please contact Sara Titus, Director of Planned Giving & Stewardship, at 402-399-2331 or stitus [at] csm.edu.

The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.