This is the time of year when we need to look back upon our stewardship for the year. Some families find it opportune to give End of Year Gifts to the parish. Because of the COVID-19 pandemic this year, our parish will not see the normal number of collections. St. John Vianney parish relies on these end of year gifts to help fund our many ministries. Gifts of cash and stock and other financially advantageous gifts such as real estate, life insurance, charitable remainder trusts, gift annuities, and IRA/retirement accounts can be made to the parish. All financial contributions are tax deductible.
Gifts may also be made to the St. John Vianney Endowment. The SJV Endowment helps provide income to the parish in the years to come. Another important way to assist our parish is through your will.
Have you remembered our parish in your will? This is a beautiful way to help our parish continue the work of ministry and service for years to come.
As always, thank you for your faithful and generous support of our parish and the work of ministry.
The CARES Act has key provisions related to charitable contributions for 2020:
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The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27, 2020. While the impact of the $2.2 trillion response bill is far reaching, here we focus on the key provisions in the CARES Act related to charitable contributions. Please note that the CARES ACT provisions highlighted below are only in effect for the 2020 tax year.
New Giving Opportunity for Non-Itemizers
A new above-the-line charitable deduction of up to $300 is available to taxpayers who do not itemize deductions.
This deduction applies only to qualified cash contributions and does not apply to cash contributions made to donor advised funds or supporting organizations. It also does not apply to carry-over contributions. Currently, it’s unclear whether this deduction will be allowed beyond 2020.
“Unlimited” Deduction for Cash Gifts
For individual taxpayers who do itemize deductions, the CARES Act temporarily suspends the 60% charitable contribution deduction limitation for qualified cash contributions.
Individual taxpayers who contribute cash to a public charity may deduct up to 100% of their adjusted gross income after taking into account other contributions subject to charitable contribution limitations. The unlimited deduction does not apply to contributions made to donor advised funds or supporting organizations.
Individual taxpayers can continue to carry forward any excess charitable contributions for five years. This is only effective in 2020.
Increased Giving Opportunity for Corporations
Corporations may deduct charitable gifts up to 25% of the corporation’s taxable income (increased from 10%). This is only effective in 2020.
Relief from the Minimum Distribution Requirement
Required minimum distributions (RMDs) are waived for IRAs, including inherited IRAs, and other qualified retirement plans such as 401(k) and 403(b) plans. This is only effective in 2020.
Of note for 2021, The SECURE Act signed into law in December 2019 increased the RMD age from 70½ to 72.
IRA Qualified Charitable Distributions “QCDs” Can Still be Made
The minimum age for making a qualified charitable distribution (QCD) from your IRA is still 70½, and the annual limit is still $100,000. The QCD is still available for 2020 even though RMDs have been suspended. Or you can take cash distributions from your IRA and make deductible gifts in 2020, with no AGI limitation.
For more information, please contact our Finance Office, 281.497.1500.
All donations to St. John Vianney are tax-deductible.