It is important to us to share valuable information about the tax benefits of planned gifts with our donors.

Today, we are writing to you to inform you about the unprecedented passing of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which is meant to financially incentivize donors to make a cash gift to help in these times of need.

For the first time in history, the CARES Act allows you to deduct all qualified charitable cash contributions up to 100% of your annual adjusted gross income (AGI) in 2020.

Examples of how this works are:

• If a donor provides a charitable cash gift of $10,000, that entire $10,000 is tax deductible as long as their adjusted gross income (AGI) is at least $10,000.
• If a donor supported the Foundation with a cash gift of $75,000 and his or her AGI is $60,000, his or her tax deduction would be $60,000 (compared to the 60% or $36,000 it would have been prior to the passing of the CARES Act). And the excess $15,000 would apply towards a five-year carry-forward deduction.

Another benefit of the CARES Act is that if you don’t itemize your deductions you can make a cash contribution of up to $300 ($600 for married couples) that will reduce your AGI, and consequently your taxable income.

If you are experiencing personal hardship due to COVID-19, the CARES Act waives the 10% early withdrawal penalty for retirement distributions up to $100,000 for coronavirus-related purposes, for persons 59½ or younger, retroactive to January 1, 2020. Withdrawals are still taxed, but taxes are spread over three years, or the taxpayer has the three-year period to repay it back.

If you have ever wanted to provide a gift to the Foundation, now is the time to do it. As it was stated in our most recent communication, cancer does not stop. The American Cancer Society Hope Lodges nationwide have been closed. These economically challenged patients will return to their homes. This is when our gas card and transportation grants are vital to patients and their families in a most unprecedented way. The Lodges will now be used as lodging for medical professionals that who are afraid to go home and infect their loved ones due to the coronavirus. It is critical now more than ever to support our mission and causes that directly impact human lives.

Another way to take advantage of the CARES Act is through supporting the Foundation with a Charitable Gift Annuity (CGA).

Why this is important: If you fund a CGA with a cash gift, the charitable deduction portion of your gift is 100% deductible up to your AGI. Additionally, with a CGA you’ll get the usual great benefits it offers, including fixed payments for life, most of which are tax-free, as well as some certainty for your investment portfolio.

Please contact Kristi Martin at kristi@lexingtonfoundation.org if you would like to learn more about giving a gift to the Foundation with a CGA or making an outright gift of cash to maximize your charitable deduction.

Thank you as always for your generous support of the Foundation.

Stay safe,
Brenda Rice, President
Kristi Martin, Executive Director