• Investing in Lives of Great Promise

    Investing in Lives of Great Promise

    With planned giving you can provide long-lasting support for Berea College while enjoying financial benefits for yourself.

  • Investing in Lives of Great Promise

    Investing in Lives of Great Promise

    With planned giving you can provide long-lasting support for Berea College while enjoying financial benefits for yourself.

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Ideas for Giving and Moving Forward in 2020

Berea College maintains its steadfast commitment to Berea students during the COVID-19 pandemic and continues to move forward with its important work. In the midst of all that is going on, many of our alumni and friends are looking forward to the future when they can enjoy shared time with those in their community and resume their regular activities. In response to the current situation, Congress recently enacted several tax law changes. The information below is intended to offer some ideas for you to consider if you are thinking about making a gift in support of our mission during this time.

1. CARES ACT

This recently passed law includes several charitable tax provisions to encourage giving. These include:

  • A new deduction for charitable donors who do not itemize when filing their tax returns. If you do not itemize but make a cash gift to charity, you will be allowed to take a special tax deduction, up to $300 (per taxpayer unit), to reduce your tax liability.
  • An increase in the deduction limit up to 100% of a donor's annual income for cash gifts (previously the deduction was capped at 60% of annual income). If you make a gift you will be able to deduct more this year.
  • The new law temporarily suspends the requirements for required minimum distributions (RMD) for the 2020 tax year. If you are 70 ½ or older you can still make a gift from your IRA and realize potential tax benefits.

2. Donor Advised Funds

If you have a Donor Advised Fund (DAF) and wish to help us this year, you can make a gift from your DAF to support our work without affecting your personal financial security.

3. Charitable Gift Annuity

If you are concerned about your financial security given the ups and downs of the stock market, you may want to consider making a gift to fund a charitable gift annuity. You might be surprised by the benefits. You can exchange your low-performing stock, CDs or cash for guaranteed, lifetime fixed payments. If you make a gift of an appreciated asset, you will not have to pay capital gains when you fund the annuity. You may also benefit from a tax deduction this year and a portion of your payments could be tax-free.

4. SECURE Act

In December, Congress passed the SECURE Act, limiting stretch payments to IRA beneficiaries to 10 years. If you planned to benefit your children with your IRA, your heirs will now pay higher taxes on the inheritance they receive from you. When you revisit your estate plan, consider funding a testamentary charitable remainder unitrust with your IRA balance. This plan can provide lifetime payments to your heirs and spread out the taxes on their inheritance.

If you are interested in learning more about any of these ideas, please contact us. Please also let us know how we can help you during this time.

Support Berea's students and our greatest need by contributing to the Berea Fund today

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