NEW LAW OFFERS INCENTIVE FOR GIFTS TO ENDOWMENT
The Coronavirus Aid, Relief, and Economic Security Act, commonly called the CARES Act, includes incentives for enhanced charitable giving. If you are planning to make a gift in support of The Summit's endowment, consider that the new law:
- Waives for 2020 the required minimum distributions from retirement plans, such as pensions and 457 plans. Any minimum distributions from retirements plans that would have been required in 2020 can be delayed until 2021. This change reduces the incentive for donors to make gifts from their individual retirement account (IRA)—the IRA Rollover Provision.
- Suspends the 60 percent adjusted gross income limitation for individuals’ charitable contributions for the year 2020. In a typical year, individuals can only take a charitable deduction of up to 60 percent of their adjusted gross income, no matter how much they give. For 2020, there is no limit, making cash contributions fully deductible.