CARES Act Impact on Philanthropy
The Coronavirus Aid, Relief, and Economic Security (CARES) Act includes several provisions that makes most individual taxpayers eligible for significant tax benefits for charitable contributions made this year (2020). Two of these benefits include:
- $300 Above-the-Line Charitable Deduction - Individuals who do not itemize their deductions will be eligible to claim up to $300 of charitable deductions in 2020, on top of the standard deduction.
- The bill may provide increased tax incentives for charitable giving for some donors, but these benefits apply only in the 2020 tax year, so you must act by December 31.
Although there are a number of potential benefits, a highlighted benefit includes:
Donors who itemize can deduct cash contributions to Friends’ Central to offset up to 100% of their income. Ordinarily, this income tax charitable deduction for cash gifts is limited to 60% of income. The 100% limit allows especially generous donors to reduce their 2020 federal income tax to zero. Existing carry-over rules still apply, so those who are even more generous can carry forward unused cash contribution deductions for up to five years. This makes it easier now more than ever for our most generous supporters to make a gift of a lifetime to Friends’ Central. Please note that this only applies to “cash” donations.
For more information, contact Colette Kleitz, Chief Development Officer, firstname.lastname@example.org or 610.645.5076.
This information does not constitute legal or financial advice. Consult your financial advisor and obtain professional counsel of an attorney to assist you in making a gift in a way that will benefit the people and organizations you care most about.
Chief Development Officer