COVID-19: The CARES Act and Charitable Giving
The world needs Trinity graduates now more than ever.
We send our gratitude, prayers, and support to the members of our community who are on the front lines of the COVID-19 pandemic, serving in their vocations with skill and Christian love.
This situation has brought many challenges for all of us, including our College. We are anticipating lost revenue of over $1 million during the remainder of this academic year. This is due to refunds on students’ room and board and lost income from cancelled guest lodging fees, campus events, and facility rentals.
Yet we cannot let the economic burden brought on by this pandemic allow us to reduce the quality academic experience that Trinity has come to be known for. Can we count on your partnership in our vision? If you are able to provide a gift at this time, you will enable us to meet this current challenge and look forward to forming and preparing the next generation of dedicated Christians for whatever crisis the world may face next.
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The massive $2.2 trillion stimulus package is intended to provide swift relief to individuals and organizations alike, in the midst of the global Covid-19 pandemic.
In addition to direct payment and other provisions that may benefit your family, here are several CARES Act items and other considerations related to your giving.
Cash Gifts
If you are among the 90 percent of American taxpayers who take the standard deduction, you may now deduct $300 in charitable gifts from your gross income. This above-the-line deduction applies only to cash gifts made directly to ministry; they cannot be made into a donor-advised fund.
100% Charitable Deduction
You may deduct cash gifts up to 100 percent of your adjusted gross income (AGI) in 2020. Gifts made directly to charity, regardless of whether they relate to Covid-19 relief, qualify. The previous deduction limit for cash gifts was 60 percent.
Gifts From Your IRA
Because of the market downturn, and in order to help individuals retain funds in their retirement accounts, Congress opted to waive the required minimum distribution (RMD) from IRAs for 2020. However, loyal supporters over 70 ½ may make a qualified charitable distribution to ministry if they wish, since this remains a cost-effective way to give.
Corporate Gifts
Corporations can now deduct outright charitable gifts up to 25 percent of income rather than the previous 10 percent limit. For contributions of food inventory, the deduction limit went from 15 percent to 25 percent of income.
Stock and Other Noncash Assets
Giving appreciated stock, real estate or other non-cash assets remains the most cost-effective giving option since you will receive a fair market value deduction at the time of your gift and avoid capital gains on the sale of appreciated assets. If you have already made gifts of stock or other assets into a donor-advised fund, now is a great time to make distributions from your account.
Gifts in a Will
Many people make their most significant contribution to ministry by leaving charitable gifts in their will. An “ultimate gift” allows you to retain access to your God-given resources for as long as you need them, while ensuring your favorite ministries continue to make a difference, well beyond your lifetime.
- + The CARES Act and Charitable Giving
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On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The massive $2.2 trillion stimulus package is intended to provide swift relief to individuals and organizations alike, in the midst of the global Covid-19 pandemic.
In addition to direct payment and other provisions that may benefit your family, here are several CARES Act items and other considerations related to your giving.
Cash Gifts
If you are among the 90 percent of American taxpayers who take the standard deduction, you may now deduct $300 in charitable gifts from your gross income. This above-the-line deduction applies only to cash gifts made directly to ministry; they cannot be made into a donor-advised fund.100% Charitable Deduction
You may deduct cash gifts up to 100 percent of your adjusted gross income (AGI) in 2020. Gifts made directly to charity, regardless of whether they relate to Covid-19 relief, qualify. The previous deduction limit for cash gifts was 60 percent.Gifts From Your IRA
Because of the market downturn, and in order to help individuals retain funds in their retirement accounts, Congress opted to waive the required minimum distribution (RMD) from IRAs for 2020. However, loyal supporters over 70 ½ may make a qualified charitable distribution to ministry if they wish, since this remains a cost-effective way to give.Corporate Gifts
Corporations can now deduct outright charitable gifts up to 25 percent of income rather than the previous 10 percent limit. For contributions of food inventory, the deduction limit went from 15 percent to 25 percent of income.Stock and Other Noncash Assets
Giving appreciated stock, real estate or other non-cash assets remains the most cost-effective giving option since you will receive a fair market value deduction at the time of your gift and avoid capital gains on the sale of appreciated assets. If you have already made gifts of stock or other assets into a donor-advised fund, now is a great time to make distributions from your account.
Gifts in a Will
Many people make their most significant contribution to ministry by leaving charitable gifts in their will. An “ultimate gift” allows you to retain access to your God-given resources for as long as you need them, while ensuring your favorite ministries continue to make a difference, well beyond your lifetime.