A Letter from the Treasurer
Dear St. Paul’s Parishioners:
For several weeks, your Vestry has been monitoring coronavirus updates and guidelines from the CDC and medical experts and has begun addressing our financial situation. I want to share the efforts and plans the Rector, Vestry, and Finance Commission have developed to provide as much financial stability as possible during these uncertain times. Below are some of the questions we’ve received.
Is St. Paul’s eligible for any funding?
We have submitted applications to two programs. One is the SBA Paycheck Protection Program. Our application was not reviewed and submitted to the SBA before the initial funding was exhausted, but at the time of this writing, it is in the queue if additional funds are approved. We have also applied for Temporary Waiver of Clergy Assessments Following Disaster, also pending.
What actions has the Vestry taken?
The Finance Commission proposed, and the Vestry approved several recommendations. The first was to reduce the budget in areas that will not have a significant impact or can be supported in other ways. Importantly, staffing and outreach will be preserved. This first round yielded a budget reduction of 7%.
The next recommendation was to begin fundraising for the creation of a COVID-19 Response Fund. The intent is to fund three areas:
- Care for parishioners in need.
- Care for the needs of the wider community.
- Stabilize parish operations.
How can St. Paul’s members help?
The Vestry mailed letters to all parishioners asking for contributions to the COVID-19 Response Fund by donating all, some, or tithing your stimulus check (if you receive one). Donations can be made here or by mail (please include “COVID-19” in the memo line of the check). Thank you to the many who have already donated to this fund!!
Another option is to take advantage of recent changes in the tax laws as a result of the passage of the CARES Act:
New Charitable Giving Provisions*
2020 Above the Line Deduction for Charitable Contributions:
- Charitable giving deductions, even if you do not itemize: With the CARES Act, all taxpayers may now take an above-the-line deduction for cash gifts made to 501(c)(3) organizations up to $300 ($600 for a married couple), even if they do not itemize. This means you reduce your income by this amount before calculating your taxes.
- Cash Gift Super Deduction for itemized filers: For those who do itemize deductions, the act also relaxes the limit on charitable contributions by increasing the amount that can be deducted from 60% of adjusted gross income to 100% of gross income. This is for cash gifts only made to 501(c)(3) organizations and excludes donor advised funds and private foundations. Gifts of appreciated property may still be something you are interested in, just keep in mind that previous AGI limitations apply.
Required Minimum Distributions are suspended, but still allowed if beneficial to retirees:
- Under the new law, Required Minimum Distributions (RMDs) for 2020 are suspended for certain defined contribution plans and IRAs to help retirement accounts try to recover from any stock market losses. Until now, to avoid penalty, as an IRA owner you had to either: a) withdraw the RMD amount, keep the money, and pay tax on it, or d) transfer up to $100,000 of the RMD amount directly to a charity to avoid penalty of tax. This is considered using a Qualified Charitable Distribution (QCD) to satisfy your RMD for the year.
- Everyone 70½ or older can still give up to $100,000 directly to charities from their IRAs, without penalty and you may still have an incentive to do so.
I am grateful for your prayers and support of St. Paul’s. We all look forward to the time we can be together for worship and fellowship. Until then, please join the virtual programs and worship services as you are able and know that you are in our prayers. The next few months will be challenging. Please reach out to Noah and Laura for support, and feel free to contact me with questions.
Yours in Christ,
Jan Toth, Treasurer
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