As you consider your generous gift to the National Military Family Association, we want you to be aware of three changes affecting charitable giving, as a result of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed March 27, 2020.
- Cash Gifts — Individuals may deduct $300 above-the-line. This charitable deduction enables a taxpayer who is one of the 90% of filers who take the standard deduction to also benefit from his or her charitable gifts. This deduction applies only to gifts of cash and may not be to a donor-advised fund or supporting organization.
- 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 public charity (excluding donor- advised funds and supporting organizations) are deductible up to 100% of AGI. The gift may be for any charitable purpose and is not limited to gifts for Coronavirus relief.
- Required Minimum Distribution 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 70½.