Springfield Business Journal_2020-08-28

SPRINGFIELD BUSINESS JOURNAL | ADVERTISING SUPPLEMENT G I V I N G A DV I S E R S U M B B A N K A D D R E S S 1 1 5 0 E B att l e f i e l d , S p r i n g f i e l d , M O 65 8 07 P H O N E 41 7. 8 9 1 . 2 1 0 0 W E B S I T E U M B.co m TO P E X EC U T I V E S Shelly Addington , Sr. VP, private banker, UMB Bank Dave Compere , Sr. VP, financial advisor, UMB Bank The COVID-19 pandemic has impacted people across the world, changing daily routines and impacting businesses in every industry, including the nonprofit sector. It has had a significant impact on donor behav- ior, and during the first three months of the pandemic, more than 1.64 million nonprofit workers lost their jobs, according to a report from the Johns Hopkins Center for Civil Society. This is a big loss for the non- profit sector, which is the third largest employer in the country, employing more than 12 million people. The CARES Act was signed into law in March to provide relief to people and businesses negatively impacted by COVID-19. For nonprofits, it created new tax benefits to help encourage people to donate and to help the industry overall. Below is an outline of the new changes to charitable giving as a result of the CARES Act. Above-the-line deductions for charitable contributions This new change encourages Americans to donate to charities by allowing non-itemizing taxpayers to take an above-the-line deduction in 2020 of up to $300 ($600 for couples) for cash contributions to most 501(c)(3) public charities. Increase in total deductions for cash contributions Taxpayers making qualified contributions can deduct these contributions up to an amount equal to 100% of the individual’s adjusted gross income. This allows people to deduct a much greater amount of their contributions, as the current limit is 60% of adjusted gross income. Unemployment benefits Some nonprofit organizations can be reimbursed for half of costs incurred through the end of the 2020 calendar year to pay unemployment benefits, includ- ing self-funding employment benefits. Delay of required minimum distributions The required minimum distributions (RMDs) for all types of retirement plans is suspended through 2020. However, rules about IRA qualified charita- ble distributions (QCD) did not change. QCDs allow individuals older than 70.5 years old to donate up to $100,000 in IRA assets directly to a charity without taking the distribution into taxable income. These changes are designed to encourage people to continue to donate during the pandemic. However, there are also other ways you can help support non- profits. If you are comfortable being around others, look for volunteer opportunities. You can also lend your support through a virtual fundraiser. Consider tapping into your social network by sharing a link for that fundraiser or the organization you care about. Be sure to reach out to local charities and ask how you can best support them – even if it’s just doing something from home. It’s the little things that count, and right now, we are all in this together. By Shelly Addington and Dave Compere Changes to charitable giving in 2020: The CARES Act and the impact of COVID-19 Top Row: Matt Keeth, Matt Tabor, Byron Pierce, Justin Butler. | Middle Row: Jeannie Clayton, David Compere, Brandon Bowenschulte, Tylor Willis | Bottom Row: Ann Marie Baker, Shelly Addington 10 2020 GIVING GUIDE