In early March, the Community Foundation of the Hermann Area, Inc established a CFHA COVID-19 Response and Recovery Fund for discretionary grantmaking to nonprofits working on or affected by COVID-19 related issues. Since then, individual donors and other funders have contributed nearly $6,500 to the COVID-19 fund. More donations are welcomed as area need continues to increase.
The COVID-19 Response and Recovery Fund grants are supporting nonprofit agencies directly involved in addressing regional needs, particularly for vulnerable citizens, such as children, seniors, those with food insecurity or health needs and assistance with monthly bills.
Grant applications are accepted on a rolling basis with announcements anticipated weekly for the near future. The application process is open to nonprofits and IRS-equivalent organizations like faith and civic agencies. Click the green button below to apply for a grant. Please note: The CFHA does not make grants directly to individuals.
The CARES Act and Charitable Giving
Here are a few key provisions the new federal CARES (Coronavirus Aid, Relief, and Economic Security) Act, specifically designed to provide opportunities for donors to support charitable organizations during this unprecedented time.
- The new law temporarily suspends the requirements for required minimum distributions (RMD) for the 2020 tax year. As you know, many individuals use their RMD to make a gift from their IRA. Of course, donors still have the opportunity to give by way of an IRA charitable rollover as well as the ability to name a charitable beneficiary on a retirement plan, and both options are tremendously impactful.
- The new law allows all taxpayers to take a charitable deduction of up to $300, even if you do not itemize. You might think that this is a small amount and would not make a difference, but what if everyone gave “just” $300? Such support would have a huge impact through our new COVID-19 Relief Fund established to assist organizations who are facing unexpected costs as a result of the COVID-19 pandemic.
- For those who do itemize their deductions, the new law allows for cash contributions to qualified charities be deducted up to 100% of adjusted gross income for the 2020 calendar year. Although many individuals may be delaying large contributions due to the uncertainties of the current economic situation, this aspect of the CARES Act will provide tremendous opportunities through the end of 2020.
- This new law also allows for Individual tax filers with adjusted gross income up to $75,000 (up to $150,000 for married couples filing joint returns) will receive the full payment amount of $1,200 for individuals and $2,400 for those filing jointly. For filers with income above those amounts, the payment amount is reduced and then phased out for individuals whose income exceeds $99,000 (or $198,000 for joint filers with no children). Many families need these funds to fill the gap of loss of wages and other issues due to the COVID-19 pandemic. For families who will be receiving these stimulus checks but have been able to maintain their household revenue structure, it would be a great opportunity to consider utilizing those funds for charitable gifting to help organizations in need.
In addition to donor gifts for immediate response to the COVID-19 pandemic, these circumstances give us the opportunity to take a closer look at various ways to leave an important charitable legacy while maintaining the ability to make changes to the gift during life. Specific topics include a review of the basics of charitable bequests, the benefits of beneficiary designations on retirement assets, and the versatility of testamentary gifts by trust (CLTs and CRTs).
During this unprecedented time, we encourage you to be especially careful of internet scams. Response to text and emails that look official and requesting financial and personal information in order to manage transactions or receive any of the above-mentioned tax incentives should be reviewed in detail prior to responding. If you have any questions or would like to discuss any of the above items in detail, please feel free to contact your affiliate representative.