Legislation known as the CARES (Coronavirus Aid, Relief, and Economic Security) Act was passed by Congress and signed into law in March 2020 to help individuals, families and businesses facing economic hardship during the coronavirus pandemic. Through this action, individual donors may maintain or increase their giving in order to support their favored missions.
Below are a few key provisions of the CARES Act that are designed to help you make a gift in support of Lakeland's mission and our students.
Minimum Distributions from IRAs Suspended:
There will be no required minimum distributions for qualified
retirement plans in 2020. However,
despite the RMD suspension, remember that if you are 70½ or older,
you can still make a gift from your IRA or name Lakeland University
as a beneficiary. Your gift will be put to use today, allowing you to
see the difference your donation is making. And, you pay no income
taxes on the gift. The transfer generates neither taxable income nor
a tax deduction, so you benefit even if you do not itemize your
deductions. Since the gift doesn’t count as income, it can reduce
your annual income level. This may help lower your Medicare premiums
and decrease the amount of Social Security that is subject to
New Deduction Available: All taxpayers may take up to $300 ($600 for a married couple) in annual charitable cash contributions, even if you do not itemize. It is an "above the line" adjustment to income that will reduce a donor's adjusted gross income, reducing taxable income. A donation to a donor advised fund does not qualify for this new deduction.
For those who do itemize their deductions, the new law allows for cash contributions to qualified charities such as Lakeland University to be deducted up to 100% of your adjusted gross income for the 2020 calendar year.
New Charitable Deduction Limits: Individuals who itemize can deduct greater amounts of their cash contributions to charities. Individuals can elect to deduct donations up to 100% of their 2020 adjusted gross income (up from 60%).
This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. References to tax rates include federal taxes only and are subject to change. State laws may further impact your individual results.