Lycoming College 2020 President's Report/Magazine

Tax reform legislation passed in December 2019 increased the income tax standard deduction for both individuals and married couples filing jointly. One of the consequences of this change is that fewer people will be able to deduct their gifts to charity. However, as we approach the end of 2020, there are still tax-efficient strategies that can maximize the impact of your philanthropy and save you money come tax time. The CARES Act passed in March created a top-line deduction of up to $300 in charitable contributions for those who do not itemize. This means a gift of $300 to Lycoming before the end of the year would reduce your adjusted gross income for 2020. For those who do itemize, gifts of appreciated stock are deductible at full market value and are not subject to federal or state capital gains tax. A Charitable Gift Annuity (CGA) can both lower your tax bill and provide an on-going revenue stream. Gifts to fund an annuity are typically $10,000 or more, likely allowing you to itemize your tax deductions. In addition, a CGA will produce lifetime income for you and/or a loved one, a portion of which may be tax-free. For those 70½ years of age or older with an Individual Retirement Account (IRA), a Qualified Charitable Distribution (QCD) is one of the most tax-efficient ways to give to your favorite charity. Even if you are not required to take a distribution from your IRA in 2020, giving pre-tax dollars to Lycoming directly from your IRA is more tax-efficient than giving cash. Learn more about these smart giving strategies at www.lycominglegacy.org or contact Robb Dietrich, senior director of major and planned gifts, at 570-321-4401 or dietrich@lycoming.edu . Maximize Your Year-End Charitable Gifts 36 LYCOMING COLLEGE 2020 PRESIDENT’S REPORT/FALL MAGAZINE