Experience Greater Tax Benefits When You Make a Gift in 2020
On March 27, the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law. This act contains several temporary changes to federal law that will impact your charitable giving and enhance the tax benefits of contributing to the TKE Foundation.
How can the CARES Act impact your 2020 annual giving?
- Donors who itemize can now deduct up to 100% of their annual income for cash gifts. Therefore, if you make a gift, you will be able to deduct more this year.
- Donors who do not itemize can claim a new deduction for charitable cash gifts of up to $300.
- Required Minimum Distributions (RMD) from retirement and IRA accounts are waived for 2020. This does not limit or change the availability of making a Qualified Charitable Deduction, and individuals 70½ and older can continue to reduce taxable income and avoid taxes on IRA gifts of up to $100,000.
How can the CARES Act impact your 2020 planned giving and estate plans?
- CARES Act incentives only apply to cash contributions made to public charities like the TKE Foundation. Donors with a Donor Advised Fund can continue to support our mission through contributions from a charitable giving account without impacting their personal financial security.
- Donors who give assets such as stocks and bonds can benefit from a greater tax benefit this year.
In addition to the CARES Act, Congress passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act in December 2019. The SECURE Act includes several provisions designed to enhance your retirement plans.
How can the SECURE Act impact my retirement plans?
- Individuals age 70 ½ and older may continue to make yearly IRA contributions.
- For donors turning age 70 ½ after December 31, 2019, the Required Minimum Distribution (RMD) age has been increased to 72. While you may still choose to make a Qualified Charitable Deduction, you are not required to withdraw from the account until you are 72.
- The SECURE Act reduces IRA distributions to beneficiaries to a period of 10 years. This can result in higher taxes on inheritance to loved ones. Including the TKE Foundation as a beneficiary of your retirement or life insurance plans can reduce tax burdens on you and your family and result in charitable deductions.
To learn more about how the CARES and SECURE Acts can benefit your annual and planned giving, contact the TKE Foundation at Foundation@TKE.org. For more information about planned giving or to download our free estate planning guide, visit TKE.org/PlannedGiving.
If you have made a planned gift to the TKE Foundation this year, please complete and return this form with gift documentation. By submitting your planned gift, you ensure our Foundation is prepared to maximize the impact of your contribution and uphold your legacy in Tau Kappa Epsilon.
To make a gift in support of the mission of the TKE Foundation, please visit TKE.org/Donate.
The Grand Council of Tau Kappa Epsilon has released our 2020-2025 Strategic Plan. Looking for a way to contribute to the future of TKE? Make a gift to Life Loyal Teke today.