The Consolidated Appropriations Act (CAA) was signed into law on December 27, 2020. It extends the additional tax incentives that the CARES Act created for charitable gifts.
The Consolidated Appropriations Act (CAA) replaces the expired CARES Act, which was created to help individuals businesses, and nonprofits facing economic hardship during the coronavirus pandemic. While many giving options and opportunities have not changed, there are a few key points to note:
The CAA continues the CARES Act provision to allow full tax deductibility for all cash gifts up to $300 regardless of whether you itemize or not, and expands it to $600 for married couples filing jointly. For individuals who do itemize, gifts to Kellenberg Memorial are now tax-deductible up to 100% of your adjusted gross income (up from 60% in previous years).
While $300 may seem like a small gift, we know that gifts of all types and sizes combine to have a huge impact and every gift is appreciated.
Note: The CARES Act suspension of Required Minimum Distributions has not been extended into 2021.
The CARES Act waived required minimum distributions(RMD) for the 2020 tax year. That waiver has not been extended. Many of you have used your RMD to make a qualified charitable distribution from your IRA directly to Kellenberg Memorial and that remains a beneficial option.
GIFTS FROM YOUR IRA
If you are 70 1/2 or older, you can make a gift from your IRA or name Kellenberg Memorial as a beneficiary.
Kellenberg Memorial will benefit from your gift today – you can see your generosity in real-time.
You pay no income taxes on your 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 doesn’t count as income, it can reduce your annual income level. This may help lower your amounts that are subject to tax.
OTHER STRATEGIC GIVING OPTIONS
Donor-Advised Fund: distributing funds already in your donor-advised fund (DAF) doesn’t affect personal financial security, so you can give to Kellenberg Memorial without worry Bequests: designating Kellenberg Memorial as the recipient of a specific amount or percentage has no impact on you now, but will have a large impact on Kellenberg Memorial later Beneficiary: including Kellenberg Memorial as a beneficiary of a life insurance policy, 401(k), or other retirement account is always an easy way to plan a gift Charitable Gift Annuity: establishing a CGA with Kellenberg Memorial guarantees fixed payments to you (and may offer a particularly attractive percentage rate)
YOUR CHARITABLE INTENTIONS
We’re grateful for your support. Planned gifts help sustain our ability to enhance Kellenberg Memorial’s Marianist education of the heart and mind while providing for future generations of Firebirds. As always, we suggest you consult a qualified tax, legal, or accounting advisor before making a new gift commitment.