Donating to New College Foundation during the pandemic is a worthwhile effort.
And the Foundation would like to bring to donors’ attention some new tax rules for charitable giving included in the Coronavirus Aid, Relief and Economic Security (CARES) Act. The Act, which was necessary to address the far-reaching effects of the COVID-19 pandemic, provides additional tax incentives to encourage charitable giving.
For example, donors may deduct gifts of cash to most public charities to offset as much as 100 percent of their income. For the 2020 tax year only, donors may deduct cash contributions to the Foundation and most other public charities to offset up to 100 percent of their income. Ordinarily, the income tax charitable deduction for cash gifts is limited to 60 percent of annual income. This 100 percent limit allows especially generous donors to reduce their 2020 federal income tax to zero.
For more information on this and other new rules for giving to the Foundation, visit giftplanning.ncf.edu.