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A Time for Philanthropy

As the clouds of the current economic storm become less dark and the rain less deafening for some of you, consider talking to your wealth advisor about how you may assist those for whom the storm still rages. Many charities now, more than ever, need financial support as their traditional funding sources have been negatively impacted. Therefore, the key services that they provide to their local community may disappear.

The CARES Act (Act) and the Families First Coronavirus Response Act created safeguards for people who have suffered economic loss due to COVID-19. The Act also includes incentives for you to help organizations that are serving people who weathered significant financial losses. The most notable incentives include a new $300 “above the line” tax deduction which is a deduction that is applied directly against your gross income regardless of whether you itemize or use the standard deduction, and the ability to deduct up to 100% of one’s Adjusted Gross Income. Both incentives apply to donations directly to charities.

None of the Act’s incentives eliminate existing tax benefits for helping charities. You may still give appreciated securities, cash, a distribution from your IRA, or property directly to a charity. However, if you would like to give but not quite sure which charities to give to or what amount to give to each, consider opening a Donor Advised Fund (DAF), which can be opened through numerous local Foundations, including the Univest Foundation*. A DAF enables you to make contributions to one account and receive a potential tax advantage in the year you make your contribution. From there, you can decide the timing and amount of future distributions. This way you can support organizations in these turbulent times and in the future when the sun finally breaks through the clouds.

If you are interested in learning more about how you may be part of easing the effects of the economic storm for the charities that you support, please contact your wealth advisor to learn more on how charitable planning may work within your financial plan.

Stay safe and stay positive.


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This article is for general information purposes only and is not intended to provide legal, tax, accounting or financial advice. The information in this article, and any opinions expressed therein, do not constitute a recommendation or an offer to buy or sell any security or financial instrument. Viewers should consult with their financial and/or legal professionals before making any financial decisions.

*Univest Foundation is an unaffiliated 501(c)(3) organization.