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Take Advantage of the New Giving Rules in 2020 Only!

Thursday, April 30, 2020


St. Paul's Charitable Giving Department has been learning all about the CARES Act, which was passed on March 27, 2020, so we can share with you how to take advantage of the new charitable giving rules it enacted for 2020 only. Here is a summary of some of the key changes:

  • New Deduction Available - If you don’t itemize your taxes, you can now take an above-the-line charitable deduction of up to $300 (or $600 for a married couple) for cash donations, in addition to claiming the standard deduction.
  • New Charitable Deduction Limits - If you do itemize, you can now deduct cash donations to St. Paul's and other qualified charities up to 100% of your adjusted gross income, instead of the previous 60%. Corporations can donate up to 25% of their taxable income, instead of the previous 10%.
  • Required Minimum Distributions (RMD) Waived - If you are 72 or older, you will not be required to take a minimum required distribution out of your IRA in 2020. Despite RMDs being waived for this year, there is still a tax benefit for making qualified charitable distributions directly from your IRA to St. Paul's if you are 70 1/2 or older.

In addition to considering how these changes may benefit you, now may be a good time to evaluate your cash flow needs and consider creating a charitable gift annuity (CGA) at St. Paul's. A CGA provides you with a reliable income stream for life, as well as tax breaks. After your lifetime, the remaining funds benefit the residents and charitable mission at St. Paul's.

If you might be interested in a CGA, please note the IRS discount rates are dropping on May 1, which will lower the charitable deduction you can claim for your gift. You have until June 30, 2020 to take advantage of the current higher rates.

For more information about charitable gift annuities or the CARES Act, please contact Dawn Hartman, Director of Planned & Major Giving, at 724-588-9613 ext. 1214 or dhartman@sp1867.org.