Certain provisions of the CARES (Coronavirus Aid, Relief, and Economic Security) Act may affect you and your charitable giving.
New Tax Incentives
For those taking the standard tax deduction, the CARES Act expands charitable giving incentives, allowing individuals to make up to $300 in contributions to qualified charities this year. While that may seem like a small amount, if all of our donors gave "just" $300, they would greatly impact all aspects of life at the Academy.
For those who itemize their deductions, the CARES Act allows charitable cash contributions to be deducted up to 100% of your adjusted gross income for the 2020 calendar year.
RMD's Suspended - But A Gift From Your IRA May Still Be A Good Idea
Some R-MA donors use their required minimum distributions (RMD's) to make a gift from their IRA. While the CARES Act suspends RMD's for the 2020 tax year, remember that if you are 70 1/2 or older, you can still make a gift from your IRA or name Randolph-Macon Academy as a beneficiary.
Your gift will have an immediate impact on the Academy. 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 your gift doesn't count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.
Questions? Contact Christine Meyer, Director of Advancement, at (540) 636-5206 or at email@example.com.