In the midst of a rise in pandemic cases, this moment in time is a complex challenge for everyone. Like any season of life that is uncertain and challenging, COVID-19 forces us to look at our long-term goals. If evaluating your charitable giving plan is one of your goals, now is an ideal time to start. Consider reviewing your legacy plans and this year’s new tax law changes to see how they may affect you.
Caring Network is a 501c3 non-profit serving women and families across the Chicago area facing unexpected pregnancies. Caring Network provides free pregnancy tests and services, including ultrasound, at their six women’s centers located in DuPage County. Receiving no government funding, the Christian non-profit relies solely on donations from individual supporters and a few private foundations. For additional information, reach out to us today.
Tax Law Changes in 2020
What You Need to Know:
- First and foremost, talk to your financial and tax advisors to confirm your best strategy.
- If you itemize deductions on your taxes, this year you can deduct cash gifts to charities (like Caring Network) up to 100 percent of your 2020 adjusted gross income. Meaning, you could reduce your federal income tax significantly – even to zero. But remember, because federal income tax rates are progressive, you should work with your advisors to learn if this will work for you.
- If you do not itemize your deductions, you may reduce your taxable income by up to $300 per tax return by making charitable contributions in 2020.
Ways to Make an Impact Through Planned Giving
If you are inspired to help but cannot part with assets in this uncertain economy, planned gifts are great options. A charitable bequest in your will or a revocable living trust are flexible and protect your assets while you need them for your family today.
A bequest is the most personal gift that you can give and there are a number of ways that you can name a charity as a beneficiary of your will. You can:
- Give a specific dollar amount or a percentage of your estate
- Bequeath stock, bonds or real estate or
- Name the charity as a residual beneficiary. This organization will receive all or part of the remainder of your estate after all other bequests have been satisfied and final taxes paid.
If you already have a will, you can add a new designated beneficiary to it by simply executing a codicil, a supplement that explains or modifies a will, which your lawyer can easily handle.
You can designate your bequest to a particular area of the charitable organization that is important to you. Or, you can leave your bequest unrestricted to meet the most pressing needs of the non-profit.
Even easier, is a gift from your qualified retirement plan. You can contact your IRA administrator to update your beneficiary form to make a designated charity a full or partial recipient of the account’s ultimate assets. If you are age 70 ½ or older, you may also make qualified charitable contributions from an IRA directly to a charitable organization, like Caring Network, tax-free.
For more than 40 years, Caring Network has assisted women and families in need and saved thousands of lives. Our commitment to bringing the hope and light of Christ to families at all times is especially important in these difficult days. If you would like to partner with Caring Network and further define your permanent legacy, contact us today. We can help you create a bequest that reflects your wishes and makes a lasting difference at Caring Network.