CARES Act

four female students with arms around each other walking to class

Information Related to Charitable Giving

The COVID-19 pandemic has caused uncertainty, stress, and very real challenges for all of us. In response, Congress recently passed the CARES Act, providing support and financial resources aimed at a number of hardships created by the COVID 19 pandemic.  Within this Act, there are several changes to tax law that may make giving to a charity easier and more advantageous to donors.  Anderson University and our students are among those impacted by this crisis. We realize that many of you are suffering through this crisis and are not able to give at this time. However, for those of you who are able to consider giving, we wanted to make sure you have this information.  

Tax Deduction

  • Donors who do not itemize (and those that do) may take a tax deduction for gifts of up to $300.
  • This applies only to cash gifts.

Please consult with your professional advisors to see what charitable tax benefits may be available to you as a result of your giving.

Increase of Cap on Charitable Gift Tax Deductions

  • The cap on deductions for a charitable gift increased from 60% to 100% of adjusted gross income.  
  • This applies only to cash gifts.  
  • Gift amounts beyond 100% of a donor’s adjusted gross income can be applied up to five additional years.
  • This provides an opportunity for additional tax savings for donors making large gifts.  For example, if a donor makes a gift of $100,000 in one year and has an adjusted gross income of $100,000 for that year, there would not be any income tax liability.   If the gift were $130,000, the donor could claim a deduction of $100,000 in the first year and claim a deduction for $30,000 in the following year.

Increase of Cap on Charitable Gift Tax Deductions for Corporations

  • The cap on deductions for a charitable gift from a corporation increased from 10% to 25% of taxable income.
  • This applies only to cash gifts.
  • This provides an opportunity for additional tax savings for a corporation similar to the example above for the individual donor.

Required Minimum Distribution (RMD) from IRAs Suspended for 2020

  • Persons 72 years old and older with an IRA are not required to take a minimum distribution in 2020.
  • This is significant because the amount of the RMD is based on the value of a person’s portfolio of stocks on December 31, 2019.  With the crash of the market since that date, the required distribution would be significantly more than if based on current value.  Not having to take a distribution in 2020 allows a retiree to leave their money in the market and hopefully see the value of their stock restored.

For more information or questions about giving, please contact Jen Hunt, Vice President of Advancement (765-641-4063 |  jehunt@anderson.edu )  Or, if you would like to make a gift now, give here.

Anderson University has applied for and received funding through the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, and intends to use at least 50 percent of those funds to provide emergency financial aid grants to students, as mandated by the Act.

The portion designated for these grants totals $782,080.  As of May 20,2020 $754,700 had been distributed to students.

The funds were distributed to 1,171 students, who were eligible under the CARES Act when the university moved to online classes on March 18, who had filed a Free Application for Federal Student Aid (FAFSA) for the 2019-20 academic year.  The FAFSA was used to determine an expected family contribution (EFC).  Based on the Pell eligibility and EFC, emergency financial aid grants were distributed to students.

Students were emailed information about the grants, explaining the eligibility requirements, on May 8, 2020.