WAYS TO GIVE
CARES Act Giving Incentives
The inclusion of an expanded charitable giving incentive is a critical acknowledgement by Congress that the work of nonprofits like the Orange Catholic Foundation are raising funds for essential services throughout our diocese. Now more than ever our parishes, schools and ministries need your help. It is the first time Congress has passed this type of giving incentive in response to disaster or national emergency.
Here’s How it Works
New Deduction Available: The bill makes a new deduction available for up to $300 per taxpayer ($600 for a married couple) in annual charitable contributions. This is particularly beneficial to people who take the standard deduction when filing their taxes (in other words for taxpayers who do not itemize their deductions). It is calculated by subtracting the amount of the donation from your gross income. It is an “above the line” adjustment to income that will reduce your AGI, and thereby reduce taxable income.
To qualify, you would have to give a donation to a qualified charity. If you have already made your donation since Jan. 1, that contribution counts toward the $300 cap. A donation to a donor-advised fund (DAF) does not qualify for this new deduction.
New Charitable Deduction Limits: Also part of the bill, individuals and corporations that itemize can deduct much greater amounts of their contributions.
Individuals can elect to deduct cash contributions, up to 100% of their 2020 adjusted gross income, on itemized 2020 tax returns. This is up from the previous limit of 60%.
Corporations may deduct up to 25% of taxable income, up from the previous limit of 10%.
The new deduction is only for cash gifts that go to a public charity. If you give cash to, say, your private foundation, the old deduction rules apply. And while the organizations that manage DAF’s are public charities, you do not get the higher deduction for donating cash to your DAF. These new limits do not apply to gifts of appreciated stock.
If your assets are substantial enough that you can give more than your income this year, you won’t lose the deduction for the excess amount. You can use it next year, as has always been the case.
A gift of cash is a simple and easy way for you to make a gift and you may be eligible for a charitable tax deduction. Cash gifts can be made to a variety of priorities. If you would like to make a gift, please complete the Foundation Gift Form and mail to the Orange Catholic Foundation address.
Orange Catholic Foundation
13280 Chapman Avenue, Suite 430
Garden Grove, CA 92840
Checks payable to: Orange Catholic Foundation
We invite you to explore our lists of funds to discover how you can make a difference in our Diocese of Orange by supporting one of our existing funds or establishing your own fund at the Orange Catholic Foundation.
Please click here for more information and to see a list of existing funds.
GIFTS FROM AN IRA
If you are 70 ½ or older, you can make a tax-free gift directly from your IRA account. The law allows you to transfer any amount up to $100,000 (annually) directly to a qualified charitable organization without paying income tax on the distribution. The transfer does not generate taxable income or a tax deduction, so you benefit even if you do not itemize your tax deductions.
A charitable distribution also counts as part of your Required Minimum Distribution (RMD), and must be made directly through your financial advisor to the charity. Please note that for 2020, RMDs for individuals over 70 ½ are suspended until 2021. However, charitable distribution tax exemption still applies.
GIFTS OF STOCK
Gifts of appreciated assets such as stock or securities are an excellent way for you to make a charitable gift. Stocks may be transferred directly to the Orange Catholic Foundation for the benefit of a parish, school or your favorite Catholic ministry. These gifts provide the following tax benefits:
- A possible charitable deduction to help you save on taxes
- Bypass federal and state capital gains taxes
- Avoidance of the tax on net investment income
From a tax perspective, a gift of appreciated assets makes good sense. You can alleviate the capital gains taxes, achieve significant tax savings and support our programs.
Have you remembered your parish, school or ministry in your will or trust? To learn more about including your parish, school or ministry in your estate plans, please call Kimberly Jetton at 714-282-3027.
This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.
To make a gift of Securities to an existing fund at the Orange Catholic Foundation, please fill out our Stock Donation Form.
For more information on giving a gift through securities, please click here.
As a Charitable Gift Account (aka Donor Advised Fund) Holder, you can make grant recommendations to the charitable accounts at your brokerage firm.
Recommendations are generally processed within a few business days, and those made online are generally processed immediately.
There are no restrictions on the maximum number of grants that can be recommended in any given time period, and the minimum requirement is at least one grant every seven years.
Recognize. Your grant recommendation can be “acknowledged” to you, another person, or to the name you gave to the Giving Account, such as The Smith Family Fund.
Designate. You can recommend that the grant be used to support the Orange Catholic Foundation and direct your gift to the For Christ Forever Capital Campaign, a parish, school or Catholic charitable organization.
Schedule. Your grant recommendation can be set up as an ongoing remittance or “scheduled grant.” You can choose from the following frequencies: monthly, quarterly, semi-annually, and annually.
Repeat. Once you’ve recommended a grant to the Orange Catholic Foundation, you can easily recommend a “re-grant” anytime online, with one easy click.
For more information, please contact the Orange Catholic Foundation at 714-282-3021 or PlannedGiving@orangecatholicfoundation.org.
For donation of vehicles or other tangible assets, please contact 714-282-3021 or rpayton@OrangeCatholicFoundation.org.
Requests to match or even double gifts are accepted. Opportunities are available to match gifts made by other donors, businesses or your employer. For more information on matching gifts, please contact the Orange Catholic Foundation at 714-282-3134 or at firstname.lastname@example.org.