If you are considering a gift to help out in these challenging times, consider a gift to the Madison West Towne-Middleton Rotary Foundation. Here are some facts that may help you decide the best way for you to give.
NEW DEDUCTION:
The Coronavirus Aid, relief and Economic Security (CARES) Act, passed in March 2020, allows taxpayers who are taking the standard deduction (rather than itemizing deductions) to claim up to $300 in charitable deductions, to a 501(c)(3) charity (such as our Rotary Foundation).
FOR DONORS WHO ITEMIZE THEIR DEDUCTIONS:
You can now give more to charity before reaching your adjusted gross income (AGI) limitation. Formerly set at 60%, the limitation for cash contributions to charities has now been raised to 100% of an individual’s AGI for 2020. Any giving beyond this 100% limitation may be carried over and used in the next five years. This provision, however, excludes giving any contributions made to established or maintain donor-advised funds (DAFs). This means that itemizing DAF donors who exhaust the 60% limit with cash contributions to their DAFs in 2020 could make any additional donations outside their DAF and have those donations qualify for a deduction (up until reaching the 100% limit).
As always, we urge you to consult with your financial or tax advisor to learn more about your options and the CARES act before making any giving decisions.
John A. Gerold
[The above information was taken from the Fall 2020 MOM’s newsletter.]