CARES Act Update
The 2020 Economic Relief Plan provides immediate changes to individual qualified charitable contribution deductions. See below for details about how your gift to students can also benefit you personally.
BUILDING ANNUAL GIVING
Each year, the University has many unbudgeted needs and expenses.
We have a pressing need for unrestricted, budget-supporting gifts to
provide for the critical needs of our students, faculty, coaches and
staff. Giving to the Annual Fund for Montevallo strengthens the
core of the University and our overall financial well-being. It is an
opportunity for everyone to participate, year after year, in providing
a living endowment to advance the University in excellence. Every
gift — no matter the size — makes a difference.
University of Montevallo Foundation
Montevallo, AL 35115
CARES Act Update
Above-the-line deductions: Under the CARES Act, an eligible individual may take a qualified charitable contribution deduction of up to $300 against their AGI in 2020. An eligible individual is any individual taxpayer who does not elect to itemize his or her deductions. A qualified charitable contribution is a charitable contribution (i) made in cash, (ii) for which a charitable contribution deduction is otherwise allowed, and (iii) that is made to certain publicly supported charities.
This above-the-line charitable deduction may not be used to make contributions to a non-operating private foundation or to a donor advised fund.
Modification of limitations on cash contributions: Currently, individuals who make cash contributions to publicly supported charities are permitted a charitable contribution deduction of up to 60% of their AGI. Any such contributions in excess of the 60% AGI limitation may be carried forward as a charitable contribution in each of the five succeeding years.
The CARES Act temporarily suspends the AGI limitation for qualifying cash contributions, instead permitting individual taxpayers to take a charitable contribution deduction for qualifying cash contributions made in 2020 to the extent such contributions do not exceed the excess of the individual’s contribution base over the amount of all other charitable contributions allowed as a deduction for the contribution year. Any excess is carried forward as a charitable contribution in each of the succeeding five years. Taxpayers wishing to take advantage of this provision must make an affirmative election on their 2020 income tax return.
This provision is useful to taxpayers who elect to itemize their deductions in 2020 and make cash contributions to certain public charities. As with the aforementioned above-the-line deduction, contributions to non-operating private foundations or donor advised funds are not eligible.