New legislative changes have taken effect that could impact your 2020 taxes and the way you can support NETRF and NET research. Now is the time to review your financial plans and ensure you are set-up to accomplish your charitable goals.
The new CARES (Coronavirus Aid, Relief, and Economic Security) Act is designed to help you, businesses, and nonprofits facing economic hardship during the coronavirus pandemic.
Required Minimum Distributions Suspended
The new law suspends temporarily the requirements for required minimum distributions (RMD) from retirement accounts for the 2020 tax year. Many NETRF donors use their RMD to make gifts from their IRAs. Despite the RMD suspension, remember that if you are 70½ or older, you can still make a gift from your IRA or name NETRF as a beneficiary.
Why a Gift from Your IRA May Still Be a Good Idea
- Your gift will be put to use today, allowing you to see the difference your donation is making.
- 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 tax.
New Tax Incentives
The CARES Act expands charitable giving incentives and allows taxpayers who take the standard deduction to make up to $300 of charitable contributions to qualified charities this year. You might think that this is a small amount and would not make a difference. But what if everyone in the NET community gave $300? Collectively, this support would have a huge impact on NET research. For those who do itemize their deductions, the new law allows for cash contributions to qualified charities such as NETRF to be deducted up to 100% of your adjusted gross income for the 2020 calendar year.
We are deeply grateful for your continued kindness and support during this uncertain time. Please contact Susan Payson at Susan.Payson@netrf.org or 617.946.1782 to discuss how your gift can help further NETRF’s mission.
Source: The Chronicle of Philanthropy, published by the Chronicle of Higher Education Inc.