Ideas for Giving and Moving Forward in 2020
Shippensburg University Foundation continues to move forward with its important work. In the midst of all that is going on, many of our friends and supporters are looking forward to the future when they can enjoy community with friends and resume their regular activities. In response to the current situation, Congress recently enacted several tax law changes. Shippensburg University Foundation has created this page to offer resources to help you with your tax planning and to offer some ideas for you to consider if you are thinking about making a gift in support of our mission during this time:
1. CARES ACT
This recently passed law includes several charitable tax provisions to encourage giving. These include:
- A new deduction for charitable donors who do not itemize when filing their tax returns. If you do not itemize but make a cash gift to charity, you will be allowed to take a special tax deduction, up to $300 (per taxpayer unit), to reduce your tax liability.
- An increase in the deduction limit up to 100% of a donor's annual income for cash gifts (previously the deduction was capped at 60% of annual income). If you make a gift you will be able to deduct more this year.
- IRA Charitable Rollover (or qualified charitable distribution - QCD) is still a great way for donors age 70½ or older to make contributions. If you are 70½ or older, a qualified charitable distribution ("QCD" or "IRA charitable rollover") allows you to contribute up to $100,000 to the SU Foundation from your IRA without paying income tax. Although the usual benefit of counting toward your required minimum distribution has been waived for 2020, a qualified charitable distribution remains a great way for donors to make tax advantageous contributions, especially donors who do not itemize their deductions.
2. Donor Advised Funds
If you have a Donor Advised Fund (DAF) and wish to help us this year, you can make a gift from your DAF to support our work without affecting your personal financial security.
If you are concerned about your financial security given the ups and downs of the stock market, you may want to consider making a gift to fund a charitable gift annuity. You might be surprised by the benefits. You can exchange your low-performing stock, CDs or cash for guaranteed, lifetime fixed payments. If you make a gift of an appreciated asset, you will not have to pay capital gains when you fund the annuity. You may also benefit from a tax deduction this year and a portion of your payments could be tax-free.
4. Restricted Gifts
If you have already made a gift to support our cause and your gift is restricted to a particular project or purpose, we would like to ask you to consider contacting us to remove your gift restrictions. This is an easy way for you to help us meet our current, most pressing needs, which will allow us to continue to support our staff and meet overhead expenses during this time.
Removing a gift restriction will give us flexibility to put your gift to meet critical needs and it doesn't require any additional gift from you.
5. SECURE Act
In December, Congress passed the SECURE Act, limiting stretch payments to IRA beneficiaries to 10 years. If you planned to benefit your children with your IRA, your heirs will now pay higher taxes on the inheritance they receive from you. When you revisit your estate plan, consider funding a testamentary charitable remainder unitrust with your IRA balance. This plan can provide lifetime payments to your heirs and spread out the taxes on their inheritance.
If you are interested in learning more about any of these ideas, please contact us. Please also let us know how we can help you during this time.