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Ideas for Giving and Moving Forward in 2020

COVID-19 RESPONSE:

WHAT UNITED WAY IS DOING TO HELP

United Way of Santa Barbara County is a leader in times of disaster and crisis.

Learn about what United Way and community partners are doing to assist those impacted by COVID-19 at https://www.unitedwaysb.org/covid19

United Way of Santa Barbara County continues to move forward with important work. In the midst of all that is going on, many of our friends and supporters are looking forward to the future when they can enjoy community with friends and resume their regular activities.

In response to the current situation, Congress recently enacted several tax law changes. We have created this page to offer resources to help you with your tax planning and to offer some ideas for you to consider if you are thinking about making a gift in support of United Way during this time:

1. CARES ACT

This recently passed law includes several charitable tax provisions to encourage giving. These include:

  • A new deduction for charitable donors who do not itemize when filing their tax returns. If you do not itemize but make a gift to charity, you will be allowed to take a special tax deduction, up to $300, to reduce your tax liability.
  • An increase in the deduction limit up to 100% of a donor's annual income for cash gifts (previously the deduction was capped at 60% of annual income). If you make a gift you will be able to deduct more this year.

2. Donor Advised Funds

If you have a Donor Advised Fund (DAF) and wish to help United Way this year, you can make a gift from your DAF to support our work without affecting your personal financial security.
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3. Charitable Gift Annuity

If you are concerned about your financial security given the ups and downs of the stock market, you may want to consider making a gift to fund a charitable gift annuity. You might be surprised by the benefits. You can exchange your low-performing stock, CDs or cash for guaranteed, lifetime fixed payments. If you make a gift of an appreciated asset, you will not have to pay capital gains when you fund the annuity. You may also benefit from a tax deduction this year and a portion of your payments could be tax-free.
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4. Restricted Gifts

If you have already made a gift to support United Way and your gift is restricted to a particular project or purpose, you can choose to remove your gift restriction and instead have your gift be unrestricted.

Removing a gift restriction will give us flexibility to put your gift to meet critical needs and it doesn't require any additional gift from you.

5. SECURE Act

In December, Congress passed the SECURE Act, limiting stretch payments to IRA beneficiaries to 10 years. If you planned to benefit your children with your IRA, your heirs will now pay higher taxes on the inheritance they receive from you. When you revisit your estate plan, consider funding a testamentary charitable remainder unitrust with your IRA balance. This plan can provide lifetime payments to your heirs and spread out the taxes on their inheritance.

6. Always United E-news Sign Up

Always United E-news provides opportunities for donors who are at or near retirement and wish to continue their relationship with United Way. We feature estate planning information and also include news from Washington, Savvy Living tips, volunteer opportunities and other timely articles.
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If you are interested in learning more about any of these ideas, please contact us. Please also let us know how we can help you during this time.

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