Year-End Tax Advantages

We are truly blessed to have such a devoted and generous community, pushing forward together to provide for today’s student needs while supporting the next generation at O’Dowd.

As you consider your charitable giving approaching calendar year-end, here is some information that might provide you with a tax advantage:

How does the CARES Act affect your charitable goals?

The CARES (Coronavirus Aid, Relief, and Economic Security) Act expands charitable giving incentives and allows taxpayers who take the standard deduction to make up to $300 of charitable contributions to qualified charities this year. You might think that this is a small amount and would not make a difference. But what if all of our donors gave “just” $300? Such support would have a huge impact on O’Dowd students.

For those who do itemize their deductions, the new law allows for cash contributions to qualified charities such as O’Dowd to be deducted up to 100% of your adjusted gross income for the 2020 calendar year.

Have you thought beyond cash?

Instead of writing a check, or selling your appreciated securities and contributing the after-tax proceeds, you can make a bigger impact by donating long-term appreciated securities (assets held more than a year), including stock, bonds, and mutual funds, directly to O’Dowd. You’ll generally be eligible to claim a tax deduction in the amount of the full fair market value, and neither you nor O’Dowd will pay any taxes on the gain. You can download transfer instructions here »

What about using your donor-advised fund?

O’Dowd is an IRS-qualified public charity and is eligible to receive contributions from donor-advised funds. It is easy to administer your fund and make a grant recommendation on behalf of O’Dowd. If you are considering using your DAF but haven’t finalized your decision, remember that gifts in support of the Cor Unum campaign are being doubled - what better way to put your fund to work!

Why a gift from your IRA may still be a good idea?

While the CARES Act temporarily suspends the requirements for required minimum distributions (RMD) for the 2020 tax year, many of our donors are still using the RMD to make a gift from their IRA. If you are 70½ or older, you can make a gift from your IRA and name the Bishop O’Dowd High School as a beneficiary.

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.

We are deeply grateful for your continued kindness and support and invite you to contribute to the Cor Unum Campaign. All gifts, no matter the size, make a difference. Your donation will be matched, dollar-for-dollar.

Please feel free to contact our Chief Development Officer, Rebecca Bischoff, at rbischoff@bishopodowd.org or (510) 553-8628 to discuss how your gift can help provide for today’s student needs and invest in tomorrow.

The information provided here is general and educational in nature and is not offered as legal or tax advice. We recommend you seek the advice of your tax advisor, attorney, and/or financial planner to make certain your considered gift fits well with your overall circumstances and planning.