New Tax Benefits When You Give to Babson
Donors can give to Babson with the benefit of the new Coronavirus Aid, Relief, and Economic Security (CARES) Act—which provides temporary charitable giving incentives.
- A gift to Babson in 2020 allows you to deduct up to $300 per taxpayer ($600 for those who file jointly) if you take a standard deduction (non-itemizing taxpayers).
- For those making significant cash donations (even from investments), there is a temporary suspension of adjusted gross income (AGI) limitations, allowing donors to deduct cash gifts up to 100% of your AGI in 2020 (as opposed to the current 60% of AGI). In addition, the deduction limit for corporations has been raised from 10% to 25% of taxable income.
- If you are over 70½, consider directing some of your tax savings gained by the waived 2020 mandatory IRA distribution to Babson.
These provisions do not apply to gifts to donor-advised funds and supporting organizations. Please consult with your tax advisor.