The CARES Act 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 keep in mind as you consider your charitable giving in 2020:
REQUIRED MINIMUM DISTRIBUTIONS SUSPENDED
The law waives required minimum distributions (RMD) for the 2020 tax year. Many people use their RMD to make a qualified charitable distribution directly from their IRA. Despite the requirement to withdraw from your IRA being suspended, if you are 70 1/2 or older, you can still make a gift from your IRA or name Fordham Prep as a beneficiary.
A GIFT FROM YOUR IRA IS STILL A GREAT OPPORTUNITY
You pay no income taxes on the 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.
NEW TAX INCENTIVES
The CARES Act provides full tax deductibility for all cash gifts up to $300 regardless of whether you itemize or not. 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.
OTHER STRATEGIC GIVING OPTIONS
Bequests: Designating Fordham Prep as the recipient of a specific amount or percentage in your will or trust has no impact on you now, but will have a large impact on the Prep in the future.
Beneficiary: Including the Prep as a beneficiary of a life insurance policy, 401(k), or other retirement account is an easy way to plan a gift.
Charitable Gift Annuity: Establishing a CGA with the Prep guarantees fixed payments to you.
We're especially grateful for your support during these trying times. For additional questions about making a gift to Fordham Prep please contact Ann Marie Denning 718-367-7500, ext. 251 or denninga@fordhamprep.org.