The CARES Act
& Charitable Giving

On March 27, 2020 the President signed into law the Coronavirus Aid, Relief and Economic Security (CARES) Act to help combat the far-reaching impacts of COVID-19. The bill provides increased tax incentives for charitable giving for both individuals and corporations, signifying an intent to stimulate philanthropy throughout America.

Watch the full video here.

Mark D. Reitsma, CFP®, CMFC

Many thanks to Mark D. Reitsma, CFP®, CMFC of Regency Wealth Management for sharing his time and expertise to Star of Hope Ministries. Mark joined Regency Wealth Management as a Partner in 2010 after a five year affiliation with LPL Financial and five years with Waddell & Reed as a Financial Advisor. He was given the Financial Planning Excellence Award in 2003, was included in Waddell & Reed’s Circle of Champions for three consecutive years, and received the company’s top award, Crest in 2005. You can discover more about Mr. Reitsma and Regency Wealth Management at regencywealth.com

Learn More

The following are some highlights of how CARES Act provisions may impact your charitable contributions in the 2020 tax year.

DO YOU ITEMIZE DEDUCTIONS?

The adjusted gross income (AGI) limit for cash contributions was increased for individual donors. For cash contributions made in 2020, you can now elect to deduct up to 100 percent of your AGI (increased from 60 percent).

CORPORATE GIVING

The limit for cash contributions was also increased for the year 2020 for corporate donors. Corporations can now deduct up to 25 percent of taxable income (increased from 10 percent).

IF YOU DON’T ITEMIZE – STANDARD DEDUCTION

The CARES Act allows for an additional, “above-the-line” deduction for charitable gifts made in cash up to $300 in total. If you are not itemizing on your 2020 taxes, you can claim this new deduction.

IRA QUALIFIED CHARITABLE DISTRIBUTIONS (QCD)

The CARES Act did not change the rules around the QCD, which allows individuals over 70½ years old to donate up to $100,000 in IRA assets directly to charity annually, without including the distribution in taxable income.

However, note the CARES Act provides a waiver in 2020 for those who normally would need to make a Required Minimum Distribution (RMD) from their IRA (thus allowing assets to grown in the account). As with all these matters, see your attorney, tax professional or financial advisor for the best course for you.

The tax information provided is general and educational in nature and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.

~ Don Stahl   9/20/20

Senior Relationship Team
Star of Hope Ministries

How Can We Help?

We are so grateful for the incredible generosity of our support network. 
Thank you everyone for your partnership as we work togethe to serve our neighbors in Paterson, Neward, Willingboro, and beyond.

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