CARES Act Helps Broward Philanthropists Respond To Coronavirus

April 6, 2020
The new CARES Act includes more than $2 trillion in economic federal relief as well as tax incentives for charitable giving to help the U.S. face the coronavirus crisis.

“What can I do?”

“How can I help?”

We are hearing from Community Foundation of Broward Fundholders and other concerned residents who want to do more to help the community they love during this unprecedented crisis. Now is the perfect time to step up and BE BOLD to ensure Broward has the philanthropic muscle it needs to survive this uncertain time and thrive in the future.

And the new CARES Act presents an extraordinary opportunity, this year only, for you to amplify your philanthropy.

This federal coronavirus relief law features tax incentives that make 2020 an ideal time for more charitable giving – just when our community needs it the most.

Here’s the biggest change: The CARES Act makes it possible for your cash gifts to public charities in 2020 to be tax deductible up to 100 percent of adjusted gross income. That means your gifts could enable you to pay no federal income tax for 2020.

Other CARES Act charitable-giving incentives include:

  • Non-cash gifts, e.g. securities, can still be deducted up to 30 percent of adjusted gross income and cash gifts can make up the balance to reach the total of 100% benefit allowed in 2020.
  • Those who give more than their taxable income in 2020 can carry forward unused cash gift deductions for up to five years.
  • While the new law waives required minimum distributions from most retirement plans during 2020, you can still make charitable contributions of up to $100,000 from your IRAs without it affecting your taxable adjusted gross income.

You should know:

  • Gifts to donor-advised Funds or private foundations are not eligible for the CARES Act’s special election to apply a 100 percent of adjusted gross income limit in 2020 for charitable cash gifts or for charitable contributions from retirement accounts.
  • The Community Foundation of Broward offers several types of charitable Funds that are eligible for the new law’s tax incentives.

Here are examples of charitable Funds at the Foundation you can create or add to that enable you to utilize the CARES Act’s exciting, one-year-only tax benefits:

  • Unrestricted Endowed Fund for Broward: You help tackle Broward’s big challenges today and those that emerge in the future. We deploy support from your Fund where it can make the most impact in our community. This type of Fund offers the most flexibility in grantmaking.
  • Field of Interest Fund for Broward: Your Fund supports a particular issue (health, education, environment, arts, etc.) that’s close to your heart. During times of crisis and beyond, your Fund can respond with help for our community that reflects your values, passions and goals for that issue.
  • Designated Fund: Allows you to focus grantmaking on specific charitable organizations. You can be assured that the organizations you support will have a permanent revenue stream to tackle their missions in good times and bad.

As with any significant gift, you should consult with your tax professional to determine what’s best for you.

We welcome the chance to have a conversation with you and your professional advisor about giving strategies to help you accomplish your charitable goals and further your legacy of philanthropy for Broward.

By giving through the Community Foundation of Broward, you can have the peace of mind of knowing that your support goes where it’s needed the most to tackle Broward’s Issues That Matter.

Information about the CARES Act provided by PG Calc Blog, www.pgcalc.com.
Let's get started!

To talk about how your philanthropy through the Community Foundation can help Broward during this crisis and beyond, contact Vice President of Philanthropic Services Nancy Thies at nthies@cfbroward.org or 954-761-9503.

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