Congratulations to the Murphy Class of 2020! Though this wasn’t the year-end anyone could have imagined, the class endured the transition to e-learning, missed proms, sporting and artistic events and virtual/drive by graduations. This class overcame incredible uncertainty and achieved remarkable accomplishments, including a record number of Ivy League acceptances (9), Evans Scholarship awardees (31), Posse Scholars (6), Questbridge Scholars (1), and Pilchard Scholarships. We are proud of our graduates and wish them continued success as they embark on their college career.
Martin Hunter, Murphy Scholar alum of the Class of 2012, and current Portfolio Associate at Wells Fargo, founded the West Side Coalition as a way to give back to his community and lead by example. We are grateful for your service to the community, Martin!
In hopes of encouraging Scholars to practice self-care, our Scholars participated in a few yoga and stress reductions workshops through a Health & Wellness series in partnership with Integrative Pathways to Healing. We are grateful to DMSF Co-founder Betsy Murphy who led the Scholars in these popular workshops.
From virtual meetings, college exploration, engagement opportunities, and a weekly Leadership Speaker Series, we remain committed to keeping our Murphy Scholar Caddies connected to one another and focused on their educational aspirations.
The caddies have been given the opportunity to attend virtual college exploration and information sessions offering prospective Murphy Scholars and their families an opportunity to learn more about the academic and co-curricular life at Evans Scholarship schools. These hosted sessions for the University of Michigan and the University of Illinois provide insight into the admissions, financial aid and scholarship process. As we transition to Phase 4 of reopening, we continue to monitor the reduced restrictions with golf and caddying, and are delighted that several of our Murphy Scholars have recently been able to get back to work as caddies at some partner clubs.
Thanks to Murphy Scholar Sarahi (University of Chicago Lab School, Class of 2021) for sharing her reflections on the Caddie Program.
DMSF is looking for individuals to help Murphy Scholars achieve a positive scholastic journey throughout high school. One immediate way is to be a mentor for a Scholar. With the help of a mentor, Scholars learn life skills and receive the guidance necessary to be successful in high school and beyond. If interested, please complete the volunteer mentor application. Need more information? Join us for a Mentor Virtual Information Session. This will be an opportunity to learn more about the Mentor Program and mentor responsibilities. RSVP for one of the dates below:
The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on Friday, March 27. The bill includes several provisions with implications for philanthropic organizations. Highlighted below is a summary of key changes that apply for the 2020 tax year. Please note these only apply for contributions to public charities. Contributions made to donor advised funds (DAF) or supporting organization do not apply.
New Charitable Deduction Limits: As part of the bill, individuals and corporations that itemize can deduct much greater amounts of their contributions. Individuals can elect to deduct donations up to 100% of their 2020 AGI (up from 60% previously). Corporations may deduct up to 25% of taxable income, up from the previous limit of 10%. The new deduction is for gifts that go to a public charity, such as DMSF. The old deduction rules apply to gifts to private foundations. The higher deduction does not apply to donations directly to a DAF.
Non-itemizers can take a charitable deduction: The adjustment is only available for cash gifts to qualified public charities in 2020 and is limited to $300 per taxpayer ($600 for a married couple) in annual charitable contributions. It is an “above the line” adjustment to income that will reduce a donor’s adjusted gross income (AGI), and thereby reduce taxable income. This is particularly beneficial to people who take the standard deduction when filing their taxes (in other words for taxpayers who do not itemize their deductions).
Required Minimum Distributions (RMD) Waived: In 2020, there will be no mandatory distributions from retirement accounts such as IRA, 401(k), 403(b) or other defined contribution plans, regardless of the age of the account owner. RMD for individuals over age 70 ½ are suspended until 2021. This includes distributions from defined benefit pension plans and 457 plans. The RMD is an attractive way for donors to make a significant charitable gift directly from their IRA to a charity through a qualified charitable contribution (QCD) while avoiding taxable income. The suspension of the RMD may dampen somewhat the incentive for a donor who makes a gift from their IRA to count toward that minimum. However, the tax benefit of the QCD remains.
Donors directing a QCD to charity this year (up to $100,000 per individual) will still reduce their taxable IRA balance. This allows all taxpayers, itemizers and non-itemizers alike, to direct gifts from their IRA to charities in a tax efficient manner.
If your assets are substantial enough that you can give more than your income this year, you won’t lose the deduction for the excess amount. You can use it next year, as has always been the case.
If you have questions or would like assistance making a donation, you can contact us at firstname.lastname@example.org
This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.