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Thanks to new legislation passed in response to the COVID-19 pandemic, there are some new ways to make an even bigger impact with your charitable giving in 2020, especially if you itemize your tax deductions. This year, the charitable deduction limit for those that itemize has been increased from 60% of adjusted gross income (AGI) to 100%.
If you take the standard deduction
For individuals that do not itemize but take the standard deduction, they too can take advantage of this new legislation. These individuals can deduct up to $300 as an “above-the-line” deduction, reducing their AGI and taxable income.
Giving from retirement accounts
There have also been some changes to giving from retirement accounts. This year, required minimum distributions (RMD) for individuals who are 70 ½ or older have been suspended. Individuals can still make a qualified charitable distribution (QCD) from an IRA to a charity, but remember, any individual that itemizes can deduct cash gifts that equal up to 100% of their AGI regardless of where that money comes from.
Public charities only
It is worth noting that these changes apply only to institutions that qualify as “public charities” (which the Newman Center does) and not to private foundations or donor advised funds.
Take advantage of this opportunity
If you are considering making a significant gift to the Newman Center this year, this may be a tax-advantageous way to do so depending on your financial situation. We encourage you to consult with a tax or financial advisor to ensure you are making the decision that is right for you.
Regardless of the size, your gift makes a huge impact on our mission to bring college students to Christ here at the Newman Center and we are so grateful for that.
If you prefer to mail a check to support the Future Building Fund, please make it out to the Newman Center and indicate FBF on the subject line. Mail this to Holy Trinity Newman Center, 520 W. Riordan Rd, Flagstaff, AZ 86001.