Benefits of Contributing in 2020
Non-Itemizers can Reduce Their Taxable Income by $300
If you take the standard deduction, the CARES Act allows you to reduce your taxable income in 2020 by up to $300 for cash contributions to charities such as Our Lady Star of the Sea  ($600 for married couples) using an “above the line adjustment,” which means it comes before you calculate your adjusted gross income.

Itemizers Benefit, too
For those who do itemize their deductions, the new law allows for cash contributions to qualified charities such as the Our Lady Star of the Sea to be deducted up to 100% of your adjusted gross income vs the normal 60%  for the 2020 calendar year.

Required Minimum Distributions Waived in 2020
For the year 2020, there will be no mandatory distributions from retirement accounts (whatever the age of the owner), thus allowing those accounts to recover. The minimum age for making a tax-free transfer from an IRA to a charity remains at 70½, and the annual limit remains at $100,000. However, since cash gifts are deductible in 2020 to the extent of adjusted gross income (100%), a person could withdraw and then contribute a larger amount—with the deduction offsetting the taxable withdrawal.

Qualified charitable distributions are still a great way to make contributions.
Even though RMDs are waived, if you are 70 ½ or older, you can still use your IRA to get a tax break on giving to charities such as Our Lady Star of the Sea. You can do so with qualified charitable distributions (QCDs) from your IRA. The funds are directly transferred from your IRA to the Our Lady Star of the Sea and are excluded from income.
Normally, this would go towards satisfying your RMD. But even though there are no RMDs this year, this is a better way to give to Our Lady Star of the Sea and reduce your taxable IRA balance at the same time. You pay no income taxes on the gift and the transfer generates neither taxable income nor a tax deduction. So you benefit even if you don’t itemize.
Only IRA owners and beneficiaries who are age 70 1/2 or older qualify for this, though. This age did not change even though the age for RMDs was increased to 72. QCDs give you back a tax benefit that would otherwise be lost. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.

Key Provisions of the CARES Act and Charitable Giving in 2020
In response to the health crisis facing our nation, the Coronavirus Aid, Relief and Economic Security (CARES) Act became law in March of 2020.

Impact on Charitable Gifts Made in 2020

• The CARES Act created a temporary above-the-line charitable tax deduction for cash donations of $300 per tax return. This deduction is only available to individuals who do not itemize their returns and claim the standard deduction ($12,400 for singles, $18,650 for head of household, $24,800 for married filing jointly). The inclusion of a universal charitable deduction may encourage those who do not itemize to continue their charitable giving in 2020.
• For individuals who itemize, the cap on deductions taken for annual contributions has been lifted from 60% to 100% of AGI for cash gifts to public charities in 2020. Any excess can be carried forward for five (5) years. Gifts made to Donor Advised Funds (DAFs) do not qualify for the increased deduction. While the Act does not specifically exclude cash gifts to fund charitable remainder trusts and charitable gift annuities, these types of gifts will likely be excluded. Please speak with your professional advisors for information specific to your individual situation.

Impact on Retirement Accounts for 2020

• The new law impacts some owners of Individual Retirement Accounts (IRAs) by providing a temporary waiver of Required Minimum Distributions (RMDs). This waiver will allow IRA owners age 72 or older to keep funds in their IRAs and other qualified retirement plans. For individuals who had to take a RMD for tax year 2019 before the April 2020 deadline, that requirement has been waived for the year.
• With recent fluctuations in the financial markets, individuals with IRAs should work with their professional advisors to determine the best strategy for giving through their IRAs. For some, keeping the funds in their IRAs until the market rebounds might be the best option. For others, continuing to make tax-free charitable gifts directly from their IRAs may be preferable.
• Individuals age 70½ and older can continue to make tax-free charitable gifts directly from their eligible IRAs through Qualified Charitable Distributions (QCDs).