n such a tumultuous year, it can be hard to think about needs beyond your front door or beyond your community. As the COVID-19 pandemic continues, this crisis is hitting the poor the hardest. Global extreme poverty is expected to rise in 2020 for the first time in over 20 years. This extreme poverty is where World Villages for Children and The Sisters of Mary enter – to address the most tragic circumstances. In many of the villages, our food costs for children have increased as much as 50%.
You can be a lifeline for those facing the worst of this crisis. In considering your year-end giving, assistance for nonprofits through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, may benefit you as well.
NEW DEDUCTION AVAILABLE
Up to $300 in annual charitable contributions. This is available only to people who take the standard deduction (for taxpayers who do not itemize their deductions). It is an “above the line” adjustment to income that will reduce a donor’s adjusted gross income (AGI), and thereby reduce taxable income. A donation to a donor advised fund (DAF) does not qualify for this new deduction.
NEW CHARITABLE DEDUCTION LIMITS
As part of the bill, individuals and corporations that itemize can deduct much greater amounts of their contributions. Individuals can elect to deduct donations up to 100% of their 2020 AGI (up from 60% previously). Corporations may deduct up to 25% of taxable income, up from the previous limit of 10%. The new deduction is for gifts that go to a public charity, such as World Villages for Children.
QUALIFIED CHARITABLE DISTRIBUTIONS (QCD) REMAIN
Money from an individual retirement account (IRA) can be donated to charity. If you’ve reached the age where you need to take required minimum distributions (RMDs) from your traditional IRAs, you can avoid paying taxes on them by donating that money to World Villages for Children.
As with any tax consideration, please consult your tax advisor for your individual considerations.
We know you have many considerations when planning your charitable contributions. First and foremost, is likely belief in the mission and trust that your donation is going to have the impact promised. We want to assure you that at World Villages for Children your gift will help children break free from a life of poverty.