The CARES Act and Charitable Giving to Habitat Springfield
The CARES Act, (Cornoavirus Aid, Relief, and Economic Security Act) which was signed into law on March 27, 2020, includes an expanded charitable giving incentive to support the essential services that nonprofits throughout the United States provide. It is the first time Congress has passed this type of giving incentive in response to disaster or national emergency.
There are a few key provisions of the new CARES Act that can make giving to Habitat Springfield easier for you! We are so grateful for your generosity, which touches—and changes—so many lives. We hope this information will help explain the new charitable giving incentive and will inspire you to make a donation today!
Universal Charitable Deduction
The CARES Act created a “universal charitable deduction,” for cash donations up to $300 to a qualified organization. This means if you donate $300 to Habitat for Humanity of Springfield this year, in 2020, your gross income will be reduced by $300 AND you can still claim the standard deduction on your 2020 tax return.
We ask that you consider giving a monthly gift of $35 for the rest of the year or a one-time $300 donation to take advantage of this tax break.
For those who do itemize their deductions, the new law allows for cash contributions to qualified charities such as ours to be deducted up to 100% of your adjusted gross income for the 2020 calendar year.
Required Minimum Distributions (RMD)
The CARES Act temporarily suspends the requirements for required minimum distributions (RMD) for the 2020 tax year. This probably comes as a relief to many of you who would have had to withdraw a greater percentage of your retirement accounts. Many of our donors use their RMD to make a gift from their IRA. If you are 70½ or older, you can still make a gift from your IRA or name us as a beneficiary.
*This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.
To make a donation, please contact Abby Glenn, Development Director at 417-829-4001 x 109.