What you should know about the CARES Act in your support of the College of Media
The wide-ranging Coronavirus Aid, Relief, and Economic Security (CARES) Act impacted a huge swath of the American economy and might affect your 2020 charitable giving benefiting the College of Media in the following ways.
Your required minimum distribution (“RMD”) has likely been cancelled this year
The CARES Act has cancelled 2020 RMDs from IRAs, 401(k)s, 403(b)s and most other defined-contribution plans maintained by an employer. However, it didn't otherwise modify the law allowing tax-free IRA Charitable Rollover gifts from donors who have reached age 70½. The Rollover remains a great option to benefit the College charitably, especially if you take the standard deduction on your taxes.
You can use cash gifts to offset up to 100% of your adjusted gross income this year
Tax reform passed in late 2017 allowed you to deduct the full amount of your charitable cash gifts as long as those deductions would not exceed 60% of your adjusted gross income (“AGI”). The CARES Act temporarily eliminates that limit in 2020. This year you can elect a 100% AGI deduction limitation for cash gifts to qualified charities (like the University of Illinois Foundation—“UIF”—for the benefit of the College of Media), potentially allowing you to decrease your federal income tax bill to zero. This change may be particularly beneficial if you’ve made a multi-year pledge to support the College of Media—please let us know if you would like to accelerate your pledge to make the most of this opportunity this year!
You can add up to $300 to your standard deduction this year via a cash gift to support the College of Media
If you elect to take the standard deduction on your taxes, the CARES Act allows you in 2020 to make an “above-the-line” adjustment up to $300 in cash gifts to qualified charities (like UIF for the benefit of the College of Media) to effectively raise your standard deduction by the amount of your gift. While each of these gifts might seem small individually, it would make an incredible difference if all of the college’s alumni and friends gave $300 to support our students during this challenging time.
We appreciate and thank you for your continued generosity and loyalty! For more information on how to make your year-end gift or how the CARES Act may positively impact your support for the College of Media contact Assistant Dean of Advancement Deanne Johnson (217-333-0752 or email@example.com) or UIF Director of Gift Planning Judy Schneider (217-244-3351 or firstname.lastname@example.org) or visit the UIF gift planning website.
The University of Illinois Foundation does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.