The CARES Act and Generous Giving

We seem to hear it every day—in every conceivable situation—wash your hands! This is not a new message, it is scriptural!

       “Come near to God and he will come near to you. Wash your hands…”

—James 4:8 (NIV)

All kidding aside, this is a unique time in American history. In every direction we hear about and observe the impact of the COVID-19 pandemic. But there is much good to be found—the sacrifice from first responders, kindness from neighbors, and aid provided by ministries, individuals, and our government is all encouraging.

Here are three important aspects of the CARES Act stimulus bill (passed March 27, 2020) that apply to individuals and families. This may provide an opportunity for you to do more than you thought possible to be a part of the generosity being displayed.

#1: Charitable Giving Deductions

For 2020, every generous American can deduct up to $300 of charitable giving—even if you take the standard deduction and do not itemize your deductions. This can provide a direct savings on your income taxes.

#2: Charitable Giving for Churches & Ministries

Here is something you may want to communicate to your church members as well:

For families and individuals who have the ability to make special gifts during this time of real opportunity for churches and ministries, they will be allowed to deduct up to 100% of their adjusted gross income when they file their 2020 tax return.

This is unprecedented—and may be a real tax-advantaged opportunity if individuals have financial resources that are beyond their personal needs. If their gift exceeds their income this year, the deduction is eligible to roll over for use in future years.

#3: IRA & the CARES Act

If people have an Individual Retirement Account and are taking Required Minimum Distributions (RMDs), the CARES Act suspends that requirement for 2020. In other words, if you do not need the income from your IRA for your living expenses you ARE NOT REQUIRED to take the minimum distribution in 2020.

With recent losses in the stock market, it may be beneficial for you to allow the assets to remain in your IRA until the market improves.

As you know with all financial decisions, you and your church members should consult your own financial advisors. However, if you have questions or want to learn about some of the creative giving opportunities, and other possible benefits of the CARES Act for you, we would love to have a conversation. Call us and we will look forward to hearing how you are faring during this time and discussing the charitable benefits of the CARES Act with you.

How We Can Help

Thank you for your continued partnership. Please email or call me if you have questions about giving under the CARES Act or if we can lift you and your family in prayer in a special way this week.

Read more about opportunities to give under the CARES Act stimulus bill.

© 2020 CDF Capital Foundation from the Lifestyle Giving Legacy files