Due to the Covid-19 pandemic, Dominican College and our students are navigating uncharted waters as we plan for the Fall semester. Fortunately, the CARES Act passed by Congress has provisions that encourages charitable giving of corporations, alumni and friends.
Below are the provisions of the CARES Act that will help you make a gift in support of our deserving students:
New Deduction Available: All taxpayers may take up to $300 ($600 for a married couple) in annual charitable cash contributions, even if you do not itemize. It is an “above the line” adjustment to income that will reduce a donor’s adjusted gross income. A donation to a donor advised fund does not qualify for this new deduction.
New Charitable Deduction Limits: Individuals and corporations that itemize can deduct much greater amounts of their cash contributions to charities. Individuals can elect to deduct donations up to 100% of their 2020 adjusted gross income (up from 60%). Corporations may deduct up to 25% of taxable income (up from 10%). The higher deduction does not apply to donations to a donor advised fund.
Required Minimum Donations From IRAs are Suspended: There will be no required minimum distribution for qualified retirement plans in 2020. However, if you are 70 ½ or older, you can still direct a major gift from your IRA to charities.