Tax Benefits of the CARES Act

The new CARES (Coronavirus Aid, Relief, and Economic Security) Act is designed to help you, businesses and nonprofits facing economic hardship during the coronavirus pandemic.

The Law, Explained by a Charitable Planning Attorney

Here are a few key provisions of the CARES Act that may affect you and your charitable goals:

Required Minimum Distributions Suspended

The new law temporarily suspends the requirements for required minimum distributions (RMD) for the 2020 tax year. This probably comes as a relief to many of you who would have had to withdraw from your retirement accounts. Many of our donors use their RMD to make a gift from their IRA. Despite the RMD suspension, remember that if you are 70½ or older, you can still make a gift from your IRA or name Hospice & Community Care as a beneficiary.

Why a Gift From Your IRA May Still Be a Good Idea

• Your gift will be put to use today, allowing you to see the difference your donation is making.
• You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
• Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.

New Tax Incentives

The CARES Act expands charitable giving incentives and allows taxpayers who take the standard deduction to make up to $300 of charitable contributions to qualified charities this year. You might think that this is a small amount and would not make a difference. But what if all of our donors gave “just” $300? Such support would have a huge impact on those we serve.

For those who do itemize their deductions, the new law allows for cash contributions to qualified charities such as Hospice & Community Care to be deducted up to 100% of your adjusted gross income for the 2020 calendar year.

"While I wasn’t able to give my time as a volunteer for a few months because of COVID-19 restrictions, I am fortunate enough to be able to donate the unplanned resource of my COVID-19 stimulus check to support Hospice & Community Care during this challenging time." —Rick Bailey, Hospice Volunteer

"Learning what I learned about hospice care inspired me to become more interested and involved. Hospice is not just another line in an obituary, it's a commitment to a service and an organization that provides amazing care for individuals and families during difficult times. My support of hospice has to do with the people I've met there over the years, my increasing knowledge about the services offered, and how grateful and appreciative people are when they find out I am associated with hospice." —Bill Kopetz

Your Charitable Goals

We are deeply grateful for your continued kindness and support during this difficult time. Learn more about including Hospice & Community Care in your will or contact Amy Lewis directly at alewis@hospicecommunity.org or (717) 735-8729 to discuss how your gift can help further our mission.