CARES Act and Support for Bridgeport Hospital Foundation
The U.S. Congress has passed the Coronavirus, Aid, Relief, and Economic Security (CARES) Act and the president has signed it into law. You may be interested in how it could impact your support of Bridgeport Hospital Foundation and other charitable causes. The following notes may help you as you consider the best way to continue your financial support of our mission.
✓The law allows an above-the-line income tax charitable deduction up to $300 even if you don’t itemize your 2020 income tax return. The break is available to people who claim the standard deduction, which is $12,400 for singles or $24,800 for married-filing jointly in 2020.This provision was inserted specifically to encourage charitable giving this year.
✓The CARES Act impacts owners of Individual Retirement Accounts (IRAs) by providing a temporary waiver of Required Minimum Distributions (RMDs) for 2020, allowing IRA owners age 72 and older to keep funds in their IRAs and other qualified retirement plans. The decreased value of their portfolios may motivate some people to keep funds in their accounts temporarily, waiting to see what happens in the investment markets. You may still make direct distributions to charity from your IRA, just as before, if it makes financial sense for you to do so.
✓For the 2020 tax year only, donors may elect to apply 100% of adjusted gross income (AGI) limit to cash gifts to public charities. Gifts to donor advised funds (DAFs) don’t qualify. This means that in 2020, a donor who deducts 30% of AGI in long term appreciated property gifts and elects the 100% of AGI limit for qualified cash contributions will be able to also deduct up to 70% of AGI for qualified cash gifts, a total deduction of up to 100% of AGI. If this donor uses all available deduction for qualified cash gifts, that donor will pay no federal income tax in 2020.
✓The new law, coupled with current financial uncertainty, has created an appealing climate for those concerned about their income from investments. Please let us know if you would like to learn more about how you can transfer assets (cash, securities, real estate, etc.) into a secure income stream for yourself and/or others.
If you’re thinking of updating your estate plan, please consider including a gift to Bridgeport Hospital Foundation. In the meantime, this is a good time to just stay in touch. Feel free to reach out to the Foundation at 203 384-3522 or send an e-mail to email@example.com with questions about what is most important to you.