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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.]
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