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The 2020 Coronavirus, Aid, Relief, and Economic Security (CARES) Act

We have received numerous inquiries from our donors about the impact of the CARES Act on supporting Cal State Fullerton in Tax Year 2020. Provisions were inserted in the CARES Act specifically to encourage charitable giving this year. The following summarizes the most applicable parts to help you as you consider the best way and the best time for your continued financial support of Cal State Fullerton. Thank you very much for caring.

 

  • New $300 Deduction for Qualified Charitable Donations: For the 2020 tax year only, the law allows an above-the-line income tax charitable deduction up to $300 per filer even if you don’t itemize your 2020 income tax return. The break is available to people who claim the standard deduction.

     

  • 60% of AGI Limit Suspended for 2020: For the 2020 tax year only, individuals can deduct any cash contributions made to qualified charitable organizations, up to 100% of their adjusted gross income (AGI). The 100% AGI limit applies to CASH and not gifts of stock or other appreciated assets. If a donor uses all available deductions for qualified cash gifts, that donor may pay no federal income tax in 2020. This applies to those who itemize their deductions on their tax returns. These changes do not apply to contributions to a supporting organization or a Donor Advised Fund (DAF). Cash used to create Charitable Remainder Trusts and Charitable Gift Annuities are excluded.

     

  • Corporations’ 10% Limit Increased to 25% for 2020: The limit for contributions from corporations increased from 10 percent of taxable income to 25 percent. The limit on contributions of food inventory would be increased from 15 percent to 25 percent of taxable income.

     

  • The CARES Act impacts owners of Individual Retirement Accounts (IRAs) provides a temporary waiver of Required Minimum Distributions (RMDs) for 2020, allowing IRA owners age 72 and older to keep funds in their IRAs and other qualified retirement plans. You may still make direct distributions to charity from your IRA, just as before, if it makes financial sense for you to do so.

     

  • The uncertain financial environment creates an appealing climate for many of our older donors concerned about income from investments. Charitable Gift Annuity rates average 5 to 6 times the return on savings or CDs. Please let us know if would like to learn more about how you can transfer assets into a secure income stream through a Charitable Gift Annuity.

     

* This information is not intended as legal or tax advice. Please consult your professional advisors for legal and tax guidance.

 

Office of Planned Giving / University Advancement
2600 Nutwood Ave., Suite 850
Fullerton, CA 92831
657-278-3947 / csufplannedgift@fullerton.edu