Together, We Create BIG Futures
Your donation positively impacts a child’s life. Not to mention, it makes you a part of something big.
New Tax Incentive for Donations to Big Brothers Big Sisters of Snohomish County
On Friday, March 27, the current administration passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion economic stimulus package legislated to provide immediate relief for nonprofit. The CARES Act aims to help charities, like the Big Brothers Big Sisters of Snohomish County, who are facing economic hardship during the coronavirus pandemic.
Here are a few key provisions and incentives of the CARES Act that may affect you and your philanthropic goals:
New Deduction Available: The CARES Act allows taxpayers to take a federal charitable deduction of up to $300 per taxpayer ($600 for a married couple) in annual charitable donations. This is available only to people who take the standard deduction (for taxpayers who do not itemize their deductions). It is an adjustment to income that will reduce a donor’s adjusted gross income (AGI), and thereby reduce taxable income. A donation to a donor advised fund (DAF) does not qualify for this new deduction.
For those individuals who do itemize their deductions, the new law allows for cash contributions to qualified, public charities such as the Big Brothers Big Sisters of Snohomish County to be deducted up to 100% of your adjusted gross income for the 2020 calendar year. Corporations may deduct up to 25% of taxable income, up from the previous limit of 10%.
These new deductions do not apply to donations made to private foundations or donor advised funds.
Required Minimum Distributions Suspended: The new act temporarily suspends the requirements for required minimum distributions (RMD) for the 2020 tax year. This probably comes as a relief to many of you who would have had to withdraw from your retirement accounts. Many of our donors use their RMD to make a gift from their IRA. Despite the RMD suspension, remember that if you are 70½ or older, you can still make a gift from your IRA or name Big Brothers Big Sisters of Snohomish County as a beneficiary.
Why should I make a gift from my IRA?
- Your gift will be put to use today, allowing you to see the difference your donation is making.
- You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
- Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.
Your Philanthropic Goals
We are deeply grateful for your continued kindness and compassion toward community during these challenging and uncertain times. If you are considering a gift to Big Brothers Big Sisters of Snohomish County, we invite you to donate online. You can also contact Pamela Shields, Executive Director, via email at [email protected] to discuss your philanthropic goals and how your gift can support our mission.
It’s not just a donation. It’s an investment in a child’s future.
When you donate online to Big Brothers Big Sisters, you join our cause and directly support children in your community. No matter how little or big the amount, donating can start making a difference in the lives of young people around you.
Donating pays dividends.
Research shows that our mentoring works. Children with a Big Brother or Big Sister show real differences in their personal and academic lives. They are more confident in their schoolwork performance, they get along better with their families and they’re 52% less likely to skip school.1
Your support goes far.
Your financial support helps us provide our programs and services nationally and in your local community—so we can develop more college grads, community leaders and entrepreneurs.
Your financial support starts lots of things, like:
- recruiting new Big Brother and Big Sister volunteers
- covering the costs of background checks, while ensuring trained professionals match Littles to responsible Bigs
- enabling ongoing supervision and relationship support for every Big, Little and Little’s family
- providing cultural and social activities to enrich the opportunities for children
Become a part of the Big Brothers Big Sisters family today. Donate now>
For more information about donating, please contact Pamela Shields at 425-252.6522
Big Brothers Big Sisters of Snohomish County is a 501(c)3 Non Profit Organization - Donations are Tax Deductible. Charitable Organization Number: 5376 - Federal Tax Id: 91-0565561.