New Incentives for Year-End Charitable Giving

The Coronavirus Aid, Relief, and Economic Security (CARES) Act offers new opportunities to maximize the benefits of your charitable giving, but only in 2020.
They include:

• Higher charitable deduction limits for cash gifts in the tax year 2020. Donors who itemize may claim a charitable deduction for up to 100% of their adjusted gross income (AGI) for cash gifts.
• A suspension of the Required Minimum Distribution (RMD) from individual retirement accounts. Individuals over age 72 do not need to take an RMD in 2020.
• Continued opportunity for individuals age 70 1/2 or older to make a qualified charitable distribution (QCD). Donors may give as much as $100,000 directly from an IRA plan to a qualified charity.
• A new tax benefit for non-itemizers. Donors who do not itemize may take a one-time adjustment to income of $300 for cash gifts.

In addition, consider the benefits of making gifts of appreciated property

A charitable contribution of appreciated securities—such as stocks, bonds, or mutual funds that have increased in value over time—is another tax-efficient way to give.

Please talk with your advisors to see what works best for you and contact Mary Beth Congdon, University Director in the Office of Planned Giving, at development.plannedgiving@yale.edu or 203.432.7025 or 800.445.6086 to learn more about tax-advantaged gifts to Yale.

The above information provides a general overview that is not intended as tax or legal advice. Donors are encouraged to consult with their own professional advisors on how the CARES Act may apply to them.