Planned and Life Income Gifts . . . Leaving a Legacy
CARES Act Offers Substantial Tax Breaks
On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law to help combat the far-reaching impacts of COVID-19. This law is designed to help you, businesses and nonprofits facing economic hardship during the coronavirus pandemic and offers significant incentives for those who are in a position to give.
We want to let you know about a few key provisions of the CARES Act and what giving strategies may be right for you. By taking advantage of this unique opportunity, only available this year, you can make a huge impact on Blue Ridge Community College and benefit financially.
- For Those
- For Those Who Take the Standard Deduction:
- Required Minimum Distribution Changes:
For those who do itemize their deductions, the new law allows for cash contributions to qualified charities, such as the BRCC Educational Foundation, to be deducted up to 100% of adjusted gross income (AGI), up from 60% previously. The new deduction is only for cash gifts that go to a public charity; it does not apply to contributions to a donor advised fund or non-operating private foundations.
You might also consider generating cash and decreasing taxes by:
- Selling depreciated securities that have declined in value below their cost. You could then realize the capital loss and contribute the cash.
- Using a capital loss to offset gain on sale of appreciated assets, thereby avoiding capital gains taxes and using the cash proceeds to make a charitable gift without a percentage limitation.
- Selling appreciated securities. While you would recognize a capital gain, you could donate the sale proceeds to eliminate taxation of ordinary income.
Additionally, if your assets are substantial enough that you can give more than your income this year, you won’t lose the deduction for the excess amount. Charitable contributions in excess of your income can be carried forward for five years subject to the 60% of AGI limit in those years.
Contact Us and Your Advisors
The CARES Act is extensive and includes numerous provisions that could benefit you financially. Consult your advisors about these provisions or contact Lisa Adkins at firstname.lastname@example.org for additional information.
Types of Planned Gifts
Blue Ridge Community College Educational Foundation works with professional advisors including estate planning attorneys, accountants, financial advisors, insurance professionals, trust officers, and other professional friends who serve our area donors, their families, and corporations.
Your clients may already be donating regularly to Blue Ridge Community College Educational Foundation or are interested in learning more about how they can make an investment in the future of their College and the lives of others in our community. We can work with you to inform your clients of the needs and priorities of the College and match them with giving opportunities according to their specific interests and needs.
It is a pleasure to partner with our professional advisors. If you would like us to meet with you and your clients, please e-mail or call us to schedule a time that works best for you.