Coronavirus Aid, Relief, and Economic Security (CARES) Act
Flagler College students and their families are navigating uncharted waters as they plan for fall enrollment. The college is also dealing with a growing number of challenges due to the COVID-19 pandemic.
Fortunately, Congress recognizes the need faced by many families and nonprofits and the importance of continued charitable giving. Through their actions, they have allowed corporate and individual donors to maintain or increase their giving in order to support the missions they most hold dear.
Below are key provisions of the new CARES Act that are designed to help you make a gift in support of Flagler’s mission and our students.
New Deduction Available: All taxpayers may take up to $300 ($600 for a married couple) in annual charitable cash contributions, even if you do not itemize. It is an "above the line" adjustment to income that will reduce a donor's adjusted gross income, reducing taxable income. A donation to a donor advised fund does not qualify for this new deduction.
New Charitable Deduction Limits: Individuals and corporations that itemize can deduct much greater amounts of their cash contributions to charities. Individuals can elect to deduct donations up to 100% of their 2020 adjusted gross income (up from 60%). Corporations may deduct up to 25% of taxable income (up from 10%). The higher deduction does not apply to donations to a donor advised fund.
Required Minimum Distributions from IRAs are Suspended: There will be no required minimum distributions for qualified retirement plans in 2020. However, if you are 70½ or older, you can still direct a major gift from your IRA to charities.
The cap on deductions for a charitable gift from a corporation increased from 10% to 25% in 2020: This applies only to cash gifts. This provides an opportunity for additional tax savings for a corporation similar to the tax deduction savings for individuals.
Thanks to our alumni, parents, faculty, staff, and friends for stepping forward to offer support to our students through the Flagler College Cares: Emergency Relief Fund. This fund is being used to help students affected by the COVID-19 crisis by providing assistance for housing, food, technology, and other emergency needs. Please consider a gift today by visiting flagler.edu/support or by calling 904-819-6437.