Fall Term Information for Phillips Academy Families

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Classroom
December 12, 2020

Charitable giving strategies

Tax-smart ways to give in 2020

Andover donors often ask how they can best maximize their charitable contributions. Tax year 2020 offers new opportunities with the CARES and SECURE Acts as well as other options that have proven consistently popular with alumni, parents, and friends.

Below are several giving strategies that donors may wish to consider before December 31, with every gift of every size to the Academy greatly appreciated.

► Under the CARES Act, individuals may deduct qualified cash contributions of up to 100 percent of their adjusted gross income (AGI) made during calendar year 2020. This includes donations using checks and credit cards.

► Those who do not itemize can still deduct up to $300 in cash contributions to 501(c)(3) public charities over and above the standard deduction. This includes donations using checks and credit cards as well.

► Gifts of appreciated securities can also be tax-savvy. Donors avoid capital gains tax on growth—and receive a deduction for the fair market value of the stock.

► Consider joining the #HalfMyDAF movement and give through a donor advised fund. Right now, approximately $120 billion is waiting to be gifted from DAF accounts and community foundations across the country. Making charitable contributions this year will have a powerful impact on many institutions, including Andover.

► While those age 70 1/2 or older are not obligated to take required minimum distributions from their individual retirement accounts in 2020, gifts from an IRA are still a solid choice. These charitable donations are excluded from taxable income, and this option is also available to those who do not itemize their deductions.

In addition to these options, donors are always welcome to make their annual gift at andover.edu/givenow.

Details on transferring securities, Andover’s tax ID, and more can be found on the Ways to Give site. If you have any questions or need assistance, please contact Director of Development Nicole Cherubini at 978-749-4288 or ncherubini@andover.edu.

*Please consult with a qualified professional regarding new rules under the CARES and SECURE Acts, and your financial and retirement situation.

Categories: Philanthropy

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