As you are likely aware, the United States Congress passed, and President Trump signed the CARES Act (S. 3548) into on March 27. Combined with previous stimulus measures, the bill provides much-needed relief for both businesses and individuals impacted by the spread of COVID-19.
How CARES Act will help COLBSA Continue #ScoutingAtHome Programs for Your Family and 16,000 Local Youth
As a small business, Cradle of Liberty Council is not immune from the challenges presented by shelter-in-place orders which have been observed since March 13. In order to sustain and increase the number of high-quality locally produced Scouting programs delivered through www.colbsa.org/homescouting, the council is applying for an emergency Paycheck Protection Program (PPP) loan through the Small Business Administration. We remain hopeful that this forgivable loan, along with a newly created Emergency Sustainability Fund, will support our modest staff as we adapt and find new ways of serving our families. Scouting is filling the social and emotional void left as other community centers and sports leagues have shut down and we appreciate our Liberty Society Members and others who have considered supporting our Emergency Sustainability Fund.
- Friday Night Campfire – Live 7 PM
- Tuesday and Thursday Cub Scout Programs – Live 4 PM
- Zoom-Enabled Merit Badges (pre-registration required) – four scheduled and more coming
- Operation Frontliner – Adopt-a-Hospital Good Turn
How You Might Benefit from CARES Act
Beginning this month, the IRS is expected to begin issuing individuals and families one-time stimulus checks which will vary based upon personal adjusted gross income levels. Retirees receiving Social Security benefits should also expect these payments.
How much will you/your family receive? – Stimulus Payment Calculator (Forbes)
New Charitable Giving Provisions*
While donors consider supporting their community through a charitable donation, below are some details about CARES Act and charitable giving:
2020 Above the Line Deduction for Charitable Contributions:
- Charitable giving deductions, even if you do not itemize: With the CARES Act, all taxpayers may now take an above-the-line deduction for cash gifts made to 501(c)(3) organizations up to $300 ($600 for a married couple), even if they do not itemize. This means you reduce your income by this amount before calculating your taxes.
- Cash Gift Super Deduction for itemized filers: For those who do itemize deductions, the act also relaxes the limit on charitable contributions by increasing the amount that can be deducted from 60% of adjusted gross income to 100% of gross income. This is for cash gifts only made to 501(c)(3) organizations and excludes donor advised funds and private foundations. Gifts of appreciated property may still be something you are interested in, just keep in mind that previous AGI limitations apply.
Required Minimum Distributions are suspended, but still allowed if beneficial to retirees:
Under the new law, Required Minimum Distributions (RMDs) for 2020 are suspended for certain defined contribution plans and IRAs to help retirement accounts try to recover from any stock market losses. Until now, to avoid penalty, as an IRA owner you had to either: a) withdraw the RMD amount, keep the money, and pay tax on it, or d) transfer up to $100,000 of the RMD amount directly to a charity to avoid penalty of tax. This is considered using a Qualified Charitable Distribution (QCD) to satisfy your RMD for the year.
Everyone 70½ or older can still give up to $100,000 directly to charities from their IRAs, without penalty and you may still have an incentive to do so.
Income Producing Gifts:
Just like before, the BSA offers many options for income producing gifts. To learn more about these types of gifts and if they are a good match for you, feel free to reach out to the Cradle of Liberty Council’s Alumni Relations Officer, Cindy Olsavsky at firstname.lastname@example.org or 267-294-4308.
*This is not intended to be legal advice but presented as an educational resource. Please consult with your personal financial/tax advisors on these matters and to receive advice on the best way for you to continue to support your favorite local charitable organizations, such as the Cradle of Liberty Council.