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Ideas for Giving and Moving Forward in 2020

The Miriam Hospital Foundation (TMH) continues to fulfill its mission by providing critical healthcare services. During all that is going on, many of our friends and supporters are looking forward to the future when they can enjoy community with friends and resume their regular activities. In response to the current situation, Congress recently enacted several changes to tax laws. TMH has created this page to offer matters to consider if you are thinking about making a gift in support of our mission, as follows:

1. CARES ACT

This recently passed law includes several provisions to encourage charitable giving, including:

  • A new deduction for donors who do not itemize when filing their tax returns. If you do not itemize but make a cash gift to qualified charities like TMH, you will be allowed to deduct up to $300 per to potentially reduce your tax liability.
  • An increase in the charitable deduction limit up to 100% of a donor's adjusted gross income for cash gifts. Previously, the deduction was capped at 60% of adjusted gross income. If you make a cash gift to support TMH, you may be able to deduct more this year than in previous years.

2. Donor Advised Funds

A donor-advised fund (DAF) is a charitable donation option that provides donors with an immediate tax benefit while allowing them to grant funds to a charitable organization. If you have a 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

Given the recent volatility of investment markets, an attractive charitable gift option may be a charitable gift annuity (CGA). With a CGA, the donor makes a gift to a charitable organization in the form of stocks, certificates of deposit, or cash. In return, the donor is eligible to take a partial tax deduction for the donation while also receiving a fixed stream of income from the charitable organization for the remainder of the donor's lifetime. Additionally, donation of an appreciated asset may allow the donor to avoid paying tax on capital gains when funding the CGA.

4. SECURE Act

In December 2019, Congress passed the SECURE Act which, among other things, shortens the time period over which beneficiaries inheriting an individual retirement account (IRA) can distribute the IRA's assets to within ten years of ownership instead of over the lifetime of the inheriting owner. This law change could cause IRA beneficiaries to incur accelerated tax liabilities on those distributions. One way to avoid tax liabilities is to donate your IRA to TMH.

Please contact us if you have any questions regarding these giving options. In reviewing this material, please note that Lifespan Corporation and its affiliates do not provide tax, legal, or accounting advice. We encourage you to consult with your personal financial advisor regarding the above matters.

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