The CARES (Coronavirus Aid, Relief, and Economic Security) Act is designed to help individuals and organizations facing economic hardship during the coronavirus pandemic. Some key provisions are set to expire on December 31, 2020.


CARES Act provisions may affect you and your charitable goals:

Tax Incentives

For those who do itemize their deductions, the CARES Act allows for cash contributions to qualified charities--such as LA Opera--to be deducted up to 100% of your adjusted gross income for the 2020 calendar year.

A donor who makes the 100% of AGI election can carry forward unused qualified cash gift deductions up to 5 years. The carryforward will be subject to the normal 60% of AGI limit, as are cash deductions carried forward from past years.

Required Minimum Distributions Suspended

Most donors will not have a required minimum distribution (RMD) from their retirement plan in 2020. Minimum distributions will not be required from IRAs, 401(k)s, 403(b)s and most other defined contribution plans maintained by an employer for individuals. Despite the RMD suspension, if you are 70½ or older you can still make a gift from your IRA and/or name the LA Opera as a beneficiary.

a Gift from Your IRA

Making a qualified charitable distribution (QCD) this year will still allow itemizers and non-itemizers alike to direct up to $100,000 from their IRA to charities in a tax efficient manner.

You pay no income taxes on your qualified charitable distribution.  The transfer generates neither taxable income nor a tax deduction--you can benefit even if you do not itemize your deductions.  Because the gift doesn’t count as income, your gift 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.

You can provide immediate support to LA Opera, and your gift will be eligible for the current matching funds challenge.   

HAVE QUESTIONS?

Please contact Kimberly Stafford at kstafford@laopera.org or 213.972.3141 for more information regarding how your gift can help further our mission.

Disclaimer: LA Opera provides information intended to introduce certain concepts, and we caution prospective donors not to rely on it for any legal, tax, investment, or other purpose. We encourage those considering a gift to consult their professional advisors before making any gift.