How a new law may affect your charitable giving

CARES Act provisions extended for 2021

The Consolidated Appropriations Act of 2021 extends and expands provisions of the CARES Act that passed in 2020, which may affect your charitable giving:

  • If you don’t itemize deductions on your 2021 tax return, you can still take a charitable income tax deduction for cash gifts to public charities like the University of Minnesota. The 2021 deduction is $300 for single filers and $600 for married couples filing jointly. 
  • If you do itemize, you can still deduct cash gifts up to 100% of your adjusted gross income (AGI) in 2021.  

Giving from an IRA

The CARES Act suspended required minimum distributions (RMDs) from retirement accounts in 2020. However, anyone of RMD age must resume those distributions in 2021 and beyond. If you are an IRA owner age 70½ or older, consider making a qualified charitable distribution directly to a public charity and avoid paying federal income tax that would otherwise be due on the distribution. If you want to continue supporting the University or other charitable organizations that are important to you, a qualified charitable distribution from an IRA is one of the most tax-advantaged ways to give.

For more information, please contact the University of Minnesota Foundation's Planned Giving staff at 612-624-3333 or 800-775-2187.

Please consult with your professional advisor about how these or other changes in the law may affect you. The University of Minnesota Foundation does not give legal or tax advice.