Important Tax Information Regarding Charitable Giving in 2020
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law and includes a provision that increases tax deductions for charitable donations made by individuals and corporations during tax year 2020. You may wish to consider the following when determining your charitable giving:
- Individuals who do not itemize their tax deductions may take a new above-the-line charitable deduction of $300 per taxpayer ($600 for a married couple), reducing one’s taxable income.
- Individuals who do itemize may deduct donations up to 100% of their 2020 Adjusted Gross Income (AGI), up from the previous limit of 60%.
- Corporations may deduct up to 25% of taxable income, up from the previous limit of 10%.
To qualify for these special deductions, contributions must be made during tax year 2020. Payments on outstanding pledges also qualify, provided the payment is made in 2020.
Cash or Cash Equivalent
A gift of cash is the simplest way to give. Cash gifts may be given as: (1) a one-time payment, (2) a pledge to be fulfilled at a later date or over a specified period of time (e.g. monthly, quarterly, semi-annually and annually) or (3) a recurring (continuous) gift given at regular intervals (e.g. monthly, quarterly, semi-annually and annually) without an end date. Payment options include check or other cash equivalent, including credit/debit card charges, electronic fund transfers and physical delivery of cash.
Relevant Radio® accepts donations of automobiles, trucks, vans, recreational vehicles, motorcycles, dirt bikes, tractors, boats and trailers. You can reach the Vehicle Donation Program by calling 1-888-906-9069 . You can also donate your vehicle online. More information about this program can be found on the Vehicle Donation Page
Gifts of Marketable Securities (Stocks – Mutual Funds)
Transferring a gift of long-term appreciated stocks, those owned for more than one year, can provide significant tax advantages by allowing you to deduct the fair market value while paying no capital gain tax. Today, most stock transfers are easily made electronically from your broker account to the Relevant Radio account. Please contact Preston Allex at 1-877-291-0123 ext 7339 if you would like to know more.
Selling your stocks first and donating the proceeds may cause you to miss out on these tax benefits. Selling depreciated stock and donating the proceeds may also be tax advantageous to some, since you can generally claim the reduced value as a “loss” in your tax filing, in addition to the income deduction for the cash proceeds. We highly recommend you seek the guidance of a professional financial planner/advisor, attorney or accountant to determine the arrangements that best serve your financial needs and philanthropic goals.
Whether you are electronically transferring stock, mailing a stock certificate or giving a mutual fund gift, please notify us. Knowledge of your gift allows us to track its progress, assign your gift correctly and provide you with an acknowledgement letter for your tax records.
A planned gift* to Relevant Radio will bring you the comfort of knowing you are continuing to provide resources to the Church and your family, helping them to deepen and to grow in the Faith for generations to come. Your planned gift to Relevant Radio will also impact the spiritual lives of countless souls. In gratitude for your generosity, Relevant Radio will enroll you in its St. Nicholas Legacy Society.
*Important: There are many planned gift options. Since each of these options is personal in matter, we highly recommend you seek the guidance of a professional financial planner or advisor, estate planning attorney or accountant to determine the arrangements that best serve your financial needs and philanthropic goals. When designating Relevant Radio for any of these options, you should refer to our legal business information as it appears at the bottom of this page
Fraternal Legacy Rider
Catholic Order of Foresters (COF) offers you a way to have a tremendous impact well beyond your lifetime with the Fraternal Legacy Rider. When you include the Fraternal Legacy Rider on eligible life insurance policies from Catholic Order of Foresters, you name a qualified Catholic organization, like Relevant Radio, to receive an additional 5% of the policy’s death benefit at no added cost to you. The financial impact of the Fraternal Legacy Rider is a remarkable way to establish your legacy in the Catholic community while protecting your family’s financial security. For more information, go to www.catholicforester.org/life-insurance/fraternal-legacy-rider or contact Mark at 855-696-2085 to speak about your personal needs and how you can leave a legacy to support Relevant Radio. Be sure to let us know if you added Relevant Radio as a beneficiary, and we will enroll you in our St. Nicholas Legacy Society.
Catholic Order of Foresters is a Catholic fraternal benefit life insurance society established in 1883. Headquartered at 355 Shuman Boulevard, Naperville, IL 60563-8494. Phone: 800-552-0145. Recruiting: 855-696-2085. Web: catholicforester.org. We are licensed in 32 states and Washington, D.C. NAIC #57487. Code: 20-09-003 (4/20)
Direct Gifts from Individual Retirement Accounts (IRAs)
The US Code, Sec. 408(d)(8), permits “qualifying charitable distributions” from traditional IRA or Roth IRA accounts to be excluded from gross income. This is great news for those who must take a “required minimum distribution” but who do not want to add to their taxable income for the year. If you own an IRA and are 70 ½ or older, you can make a tax-free transfer of up to $100,000 a year to Relevant Radio.
Requirements and benefits:
- Donors must be at least 70½ years old on the date of the gift.
- The IRA Custodian (trustee) must transfer your gift directly to Relevant Radio.
- Up to $100,000 per IRA owner may be contributed each year.
- Donors recognize no taxable income on the transfer.
- While the charitable distribution cannot be claimed an income tax deduction, it also is not used in calculating the percentage limitation on charitable contributions. For some donors, this may be the most significant tax benefit of making a charitable IRA distribution rather than a direct contribution to Relevant Radio.
- The gift can count toward the IRA owner’s required minimum distribution.
- The gift must be made by December 31 to qualify for the current tax year.
Many companies offer matching donations for their employees’ charitable donations, oftentimes as much as dollar-for-dollar. It is generally as simple as filing the appropriate forms with your HR department before committing your donation to us.
Other Ways to Give
- Donor advised funds
- Private foundations
- Charitable trusts
|Federal Tax ID:||39-2003067|
|Legal Name:||Relevant Radio, Inc|
|Legal Address:||1496 Bellevue St., Ste 202, Green Bay, WI 54311|
|Toll Free Number:||(877) 291-0123|